Summary of Financial Results for Fiscal Period Ended December 31, 2020 (Infrastructure Fund)I n f r a s t r uc t ur e F u n d I s s u e r
S e c u r i t i e s C o d e
R e p r e s e n t a t i v e
Asset Management Company
R e p r e s e n t a t i v e
C

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Scheduled filing date of securities
reportSupplementary materials forfinancial results
Financial results briefing session

February 17, 2021
L i s t e d S t o c k Tokyo Stock
Canadian Solar Infrastructure Fund, Inc.
E x c h a n g e Exchange
9284
URL
https://www.canadiansolarinfra.com/(Title)Executive Director(Name) Tetsuya Nakamura
Canadian Solar Asset Management K.K.
CEO and Representative(Title)(Name) Tetsuya Nakamura
Director(Title)Chief Financial Officer(Name) Hiroshi Yanagisawa
Tel.
03(6279)0311
Scheduled date ofcommencement of cash
distribution payment

March 30, 2021

March 16, 2021

YES
YES (For institutional investors and analysts)(Amounts are rounded down to million yen)
1. Status of Management and Assets for Fiscal Period Ended December 31, 2020 (from July 1, 2020 to December 31, 2020)(1) Management Status(Percentage figures are the rate of period-on-period change)
Operating revenues
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal period ended
2,413
3.5
858
2.1
717
3.5
716
3.5
Dec. 2020
Fiscal period ended
2,331
11.6
840
20.5
692
29.5
691
29.5
Jun. 2020

yen

%

%

Ordinary profit tooperating revenue ratio
%

3,099

3.3

1.5

29.7

2,992

3.2

1.4

29.7

Profit per unit
Fiscal period ended
Dec. 2020
Fiscal period ended
Jun. 2020

Rate of return on equity

Ordinary profit
to total assets ratio(2) Status of Cash Distributions
Distributions per
Total
Total distributions
Distributions per
unit
Total
distributions(excluding
Distributions inunit (including(excluding
distributions in(including
distributions inexcess of
distributions in
distributions inexcess of
distributions inexcess of
earnings per unit
excess ofexcess of
earnings
excess of
earnings)
earnings)
earnings)
earnings)
Yen
Million yen
Yen
Million yen
Yen
Million yen
Fiscal period
ended Dec. 2020
Fiscal period
ended Jun. 2020

Payout ratio

Ratio ofdistributions to
net assets

%

%

3,099

716

601

138

3,700

855

100.0

3.3

2,992

691

708

163

3,700

855

100.0

3.2

(Note 1) The payout ratio is calculated according to the following formula.
Payout ratio = distributions per unit (excluding distributions in excess of earnings) / profit per unit x 100(Note 2) The payout ratio and the ratio of distributions to net assets are calculated based on the numerical data excluding
distributions in excess of earnings.
(Note 3) Total distributions in excess of earnings are all refunds of investments that constitute distributions on the decrease ofcapital contribution under the tax law.
(Note 4) The ratio of the decrease in net assets upon distributions in excess of earnings (refunds of investments that constitutedistributions on decrease of capital contribution under the tax law) is 0.008 for the fiscal period ended June 30, 2020 and
0.007 for the fiscal period ended December 31, 2020. In this regard, the ratio of the decrease in net assets is calculated
according to Item 4, Paragraph 1, Article 23 of the Ordinance for Enforcement of the Corporation Tax Act.

1

(3) Financial Position
Total assets
Million yen

Net assets
Million yen

49,052
49,132

Fiscal period ended
Dec. 2020
Fiscal period ended
Jun. 2020

Equity ratio

Net assets per unit%

yen

21,59244.0

93,397

21,73144.2

93,998(4) Status of Cash Flows

Million yen

Million yen

Million yen

Cash and cash equivalents
at the end of the fiscal
periodMillion yen

1,508

(654)

(645)

2,828

2,059

(21)

(1,884)

2,619

Cash flows fromoperating activities
Fiscal period ended
Dec. 2020
Fiscal period ended
Jun. 2020

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Forecasts of Management Status for Fiscal Period Ending June 30, 2021 (from January 1, 2021 to June 30, 2021), Fiscal PeriodEnding December 31, 2021 (from July 1, 2021 to December 31, 2021) and Fiscal Period Ending June 30, 2022 (from January 1,
2022 to June 30, 2022)(Percentage figures are the rate of period-on-period change)
Operating revenues Operating income

Fiscal period
ending Jun.
2021
Fiscal period
ending Dec.
2021
Fiscal period
ending Jun.
2022

Ordinary income

Distributions perunit (excluding
distributions inexcess of
earnings)

Net income

Distributions inexcess of earnings
per unit

Distributions perunit (including
distributions inexcess of
earnings)

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

yen

yen

yen

3,337

38.3

1,315

53.3

862

20.2

861

20.2

2,207

1,493

3,700

3,739

12.1

1,440

9.5

1,212

40.6

1,212

40.7

3,106

644

3,750

3,715

(0.7)

1,395

(3.1)

1,176

(3.0)

1,176

(3.0)

3,014

736

3,750

(Reference)
Fiscal period ending June 30, 2021 (181 days): Forecast total number of investment units issued and outstanding at end of
the period: 390,265 units, Forecast profit per unit: 2,207 yen
Fiscal period ending December 31, 2021 (184 days): Forecast total number of investment units issued and outstanding at endof the period: 390,265 units, Forecast profit per unit: 3,106 yen
Fiscal period ending June 30, 2022 (181 days): Forecast total number of investment units issued and outstanding at end of
the period: 390,265 units, Forecast profit per unit: 3,014 yen* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies associated with amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than (i):No
(iii) Changes in accounting estimates:No(iv) Retrospective restatement
No(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding(including treasury units) at end of period

Fiscal period
Fiscal period
231,190
231,190
Dec. 2020
Jun. 2020
Fiscal period
Fiscal period(ii) Number of treasury units at end of period00Dec. 2020
Jun. 2020(Note) For the number of investment units based on which profit per unit is calculated, please refer to “Notes on regarding
per unit information” on page 43 below.

* Summary of Financial Results is out of scope from the audit by chartered accountant or corporate auditor.

2

*

Explanation of Appropriate Use of Forecast of Management Status and Other Matters of Special Note
Forecast of management status and other forward-looking statements contained in this document are based on information that iscurrently available and certain assumptions that are deemed reasonable by Canadian Solar Infrastructure Fund. Accordingly, theactual management status, etc. may differ materially due to various factors. In addition, the forecast is not a guarantee of theamount of cash distributions. For details of the assumptions underlying the forecast of management status, please refer to“Assumptions Underlying Forecast of Management Status for Fiscal Period Ending June 30, 2021 (January 1, 2021 to June 30,2021), Fiscal Period Ending December 31, 2021 (July 1, 2021 to December 31, 2021) and Fiscal Period Ending June 30, 2022
(January 1, 2022 to June 30, 2022),” described on or after page 16 below.

31. Management Policy and Management Status(1) Management Status
I. Overview of the Fiscal Period under Review
a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18, 2017 with money
invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafter referred to as the “AssetManager”) as the founder under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951 including
subsequent amendments; hereinafter referred to as the “Investment Trusts Act”). Registration with the Kanto Local Finance
Bureau was completed on June 9, 2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its investment
units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock Exchange”) Infrastructure Fund Market on
October 30, 2017 (security code: 9284), and issued new investment units (2,890 units) through third-party allotment on
November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 5, 2018 and issued newinvestment units (2,333 units) through third-party allotment on October 4, 2018. As a result, the total units issued at the end of
the fiscal period under review (as of December 31, 2020) were 231,190 units.
b. Investment Environment
Real GDP in July-September 2020 grew 5.3% quarter on quarter (22.9% on an annualized basis), and consumption andexport increased substantially. In the second half of the six-month period, the resurgence of COVID-19 cases in Japan andoverseas caused a fall in consumption and export. Adjustment of wages and capital expenditure increased, recovery slowed
down, and preliminary real GDP growth for the October-December quarter was 3.0% from the previous quarter (12.7% on anannualized basis).
The stock market in Japan fluctuated in a small range from July to October. The U.S. presidential election held in
November, a rise in COVID-19 cases in the U.S. and Europe, and aggravation of the global economy and corporate
performance were among the factors that prevented a rise in stock prices. From the end of October, signs of recovery in the
global economy increased, the victory of U.S. Democratic Presidential candidate Joe Biden became more probable, and theuse of COVID-19 vaccines became more realistic, which constituted a significant turning point. These factors encouraged
expectations for global economic recovery. The Japanese stock market, having a large portion of shares sensitive to theeconomy, rose substantially from a somewhat late start, and the Nikkei average surpassed 26,000 yen for the first time after
approximately 29 years. The start of COVID-19 vaccination overseas in December was received positively and the stock pricerapidly increased. It continued to rise steadily amid growth in the global risk appetite due to widespread expectations for theagreement on the U.S. economic policy talks. The Nikkei average closing price on December 29 reached 27,568 yen, thehighest in approximately 30 years and four months.
Meanwhile, the Infrastructure Fund Market rose to 1,180.95 points on November 9, the highest after the TSE Infrastructure
Fund Index fell to a record low of 1,046.50 points at the end of July. This was likely a result primarily of a fall in the prices of
the investment units of listed Infrastructure funds, which was less than a fall in the TSE REIT Index, the focus of investors onhigh distribution yields, and an increase in investors’ interest after the start of full operation of the Japanese policy aiming toachieve a decarbonized society. Subsequently, the TSE Infrastructure Fund Index stopped rising partly due to a shift in part ofthe private investors’ funds to environment-related stocks, and the closing price at the end of December was 1,138.20 points.
In light of the power demand-supply environment in Japan during the period between October and December 31, Mizuho
Securities reports that power demand was down 0.1% on average nationwide, down 0.1% for Hokkaido Electric Power, up
2.2% for Tohoku Electric Power, down 0.9% for Tokyo Electric Power, up 0.8% for Chubu Electric Power, up 1.3% for
Hokuriku Electric Power, down 0.6% for Kansai Electric Power, down 1.6% for Chubu Electric Power, down 2.1% forShikoku Electric Power, up 0.7% for Kyushu Electric Power, and down 0.6% for Okinawa Electric Power. Despite a slightrecovery, the national average of prices on the Japan Electric Power Exchange (JEPX) in the first week of December wasapproximately 5.9 yen/kWh, a substantial fall from approximately 8 yen in the same period of the previous year. By region,
prices in east Japan remained lower than west Japan since September. From mid-December 2020, a decrease in temperaturecaused a steep rise in the market price, and the national average of the JEPX price in the first week of January 2021
(December 29, 2020 to January 4, 2021) was 32.5 yen/kWh.
In the environment surrounding renewable energy power generation facilities (stipulated in Paragraph 3, Article 2 of the
Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (ActNo. 108 of 2011; hereinafter referred to as the “Act on Renewal Energy Special Measures,” including subsequent
amendments)(excluding facilities that fall under real estate); hereinafter referred to as “renewable energy power generation4

facilities” (Note 1)) held by CSIF, the output curtailment implemented by Kyushu Electric Power Co., Inc. (hereinafterreferred to as “Kyushu Electric Power”), which requires renewable energy operators to temporarily suspend power generation
through photovoltaic power generation facilities and wind power generation facilities (Note 2), resumed on October 13, 2019,
for the first time since May 13, 2019, across the mainland of Kyushu.The output curtailment was taken over by Kyushu
Electric Power Transmission and Distribution Co., Inc. (hereinafter referred to as “Kyushu Electric Power Transmission andDistribution”), a company established on April 1, 2020, and succeeded to a general power transmission and distribution
business absorbed and split by Kyushu Electric Power, and implemented for one day each in September and October, totaling
two days during the period under review. The primary reasons for the considerable drop in the number of days for thesuspension of power generation are because the No. 1 and No. 2 reactors at Sendai Nuclear Power Plant were shut down on
March 16 and May 20, respectively, to install anti-terrorism functions called facilities for dealing with specific severe
accidents and resumed operation on November 19 and December 24, respectively. Operation of the No. 3 reactor at the
Genkai Nuclear Power Plant was suspended for 67 days from September 18 to November 23 due to regular inspections.
Regular inspections of the No. 4 reactor at the Genkai Nuclear Power Plant started on December 19.
On October 26, 2020, at the 203rd extraordinary session of the Diet, Prime Minister Yoshihide Suga declared the goal ofachieving overall zero emissions of greenhouse gases by 2050, that is the creation of a carbon neutral, decarbonized society.
Participants at the meeting of the Global Warming Prevention Headquarters held on October 30, 2020, discussed initiatives tobe taken to achieve carbon neutrality by 2050, and the Prime Minister stated to the Cabinet members that taking on thechallenge of achieving carbon neutrality by 2050 was Japan’s new growth strategy, which should expand the development of
the industrial structure and the economy and society to create a virtuous circle of economy and the environment. The climate
emergency declaration was adopted at the plenary session of the House of Representatives held on November 19, 2020, andthe plenary session of the House of Councilors held on the following day, which stated that Japan and the rest of the world
shared the recognition that global warming had reached a state of climate crisis beyond the range of climate change and Japanwas determined to redesign its economy and society, dramatically improve its efforts, and implement appropriate measures as
an honored member of international society to achieve a low-carbon society as soon as possible to overcome this crisis.
The government established a task force for the total inspections of regulations related to renewable energy in November
2020 to promptly implement regulatory reforms based on its view that a shift in renewable energy to the main energy source
and the maximum level of adoption were crucial for achieving a carbon neutral society by 2050, and it was essential to inspect
all regulations that would be a barrier to this goal and to expand the regulatory revision required and the acceleration of thisrevision.
On June 12, 2020, the Act of Partial Revision of the Electricity Business Act and Other Acts for Establishing Resilient andSustainable Electricity Supply Systems (hereinafter referred to as the “Act” in Section b. ), which covers amendments to acts
such as the Electricity Business Act, the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities, and the Act on the Japan Oil, Gas and Metals National Corporation, Independent
Administrative Agency (hereinafter the “JOGMEC Act”), was enacted. The parts of the Act concerning partial revision of the
Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities are
due to go into effect on April 1, 2022.
The main points of the Partial Revision of the Electricity Business Act are to (i) require electricity transmission/distribution
businesses to jointly formulate action plans on their collaboration in disaster responses, provide information to municipalities
and other related entities in disaster response, and achieve efforts for systematic renewal of the existing facilities; (ii) add tothe services provided by the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) new services
to formulate a Plan on Development of Cross-Regional Grids; (iii) inaugurate a charging system for wheeling services inwhich the METI Minister should regularly approve the upper threshold of business incomes based on the investment plans andother documents submitted by businesses and the Minister should encourage the businesses to introduce more efficient costs
within the threshold; and (iv) take measures for defining distribution businesses under laws including small distributed energy
resources, in specific service areas.
The main points of the partial revision of the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities (REA) are (i) to change the title to the “Act on Special Measures
Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities” (hereinafter the REA after
amendment by the Act is referred to as the “2020 Revised Act on Renewal Energy Special Measures”); (ii) to establish a Feed
-in-Premium (FIP) scheme in addition to the existing FIT scheme, a new scheme in which renewable energy generators areable to receive a certain level of premium based on the market price; (iii) to establish a system in which part of theexpenditures for fortifying electricity grids necessary for expanding the introduction of renewable energy into businesses, e.g.,
regional interconnection lines is to be supported based on the surcharge system across Japan; (iv) to impose obligations on
renewable energy generators to establish an external reserve fund for the expenditures for discarding their facilities; and (v) to5

introduce a system for nullifying approvals for projects that do not commence operation within a certain period after obtaining
the FIT/FIP approval to rectify a situation in which grids are not used effectively.
Finally, the main points of the partial revision of the JOGMEC Act are (i) to establish new functions of Japan Oil, Gas andMetals National Corporation, Independent Administrative Agency (hereinafter referred to as “JOGMEC”) in which, in case of
emergencies, JOGMEC will, at the request of the METI Minister based on the provisions of the Electricity Business Act,
procure fuel for electricity generation; and (ii) to enable JOGMEC to gain additional functions, for example, equity capital intransshipment or storage terminals for natural gases and in projects for mining and refining metallic minerals in order tosecure diverse procurement sources of LNG and stable supply of metallic minerals.
While not included in the revisions under the Act, the introduction of power producer-side base charges is being considered.
Power producer-side base charges are imposed on a per-kW basis to ensure that the power producers that use power grids also
bear a portion of the fixed costs for transmission and distribution facilities currently borne by retail electricity business
operators on the demand side through wheeling charges. The introduction of power producer-side base charges is currently
under consideration.If power producer-side charges are imposed on FIT renewable energy sources, power producers that sellelectricity under the FIT scheme will have no way to transfer costs to a third party during the FIT period and their cashflows
will be negatively affected unless adjustment measures are introduced for projects that have already obtained FIT approval.
Regarding the specific conditions and extent of relief measures with power producers that sell electricity under the FIT
scheme in connection with the detailed design of the system, the Calculation Committee for Procurement Price convened on
December 27, 2019, discussed cuts to wheeling charges (national average of 0.5 yen per kWh) and adjustment measuresthrough surcharges on the assumption that adjustment through the transfer of costs was possible for FIT renewable energy
sources in the same way as for other energy sources. However, arguments from both sides were presented and it was decided
that the issues should be summarized and discussed again based on the perspectives of the national burden and theforeseeability of investment. It remains to be seen whether adjustment measures through surcharges will be introduced.
Subsequently, in deliberations in the Diet, Hiroshi Kajiyama, Minister of Economy, Trade and Industry stated in an answer ata meeting of the Committee on Economy, Trade and Industry at the House of Representatives held on May 20, 2020 “it is also
true that, depending on the system design, renewable energy producers whose usage of transmission and distribution facilities
is low will face higher costs. Therefore, in my view, some degree of consideration and creativity is required to ensure that an
excessive burden is not placed on existing FIT power producers.” Then, at a meeting of the Committee held on May 22, 2020,
a supplementary resolution was passed upon approval of the Act stating that “in consideration of power producer-side basecharges, the situation of renewable energy power producers approved under the feed-in-tariff scheme will be taken into
consideration and due consideration will also be given to ensure that renewable energy power producers are not unjustly
disadvantaged compared with other power producers. In addition, at a post-cabinet meeting news conference held on July 3,
2020, METI Minister Kajiyama stated with respect to the power-producer-side base charges currently being considered fromthe viewpoint of encouraging efficient adoption of renewable energy through promotion of efficient use of power grids, that
he has issued instructions for a review to ensure that the framework is also consistent with the review of rules surrounding theuse of trunk power-transmission lines (being considered to accelerate the adoption of renewable energy while reducing
existing inefficient thermal power sources). METI held discussions in response to the instructions of Minister Kajiyama, andthe argument resumed at the 53rd meeting of the System Design Working Group of the Electricity and Gas Market
Surveillance Commission held on December 15, 2020.
Under the 2020 Revised Act on Renewal Energy Special Measures, approved power producers are, in principle, obliged to
set aside funds with the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) to cover the costof decommissioning solar power generation facilities and disposal of waste materials. However, the Revised Act states that the
projects subject to reserve requirements will be designated by METI and the amount to be reserved and the frequency ofwithholding of decommissioning costs will be prescribed by a METI ordinance. Indeed, the details of a system for ensuring
the reserve of decommissioning costs for solar power generation facilities have been considered on seven occasions sinceApril 2019 at the Advisory Committee for Natural Resources and Energy, the Energy Efficiency and Conservation
Subcommittee, the Subcommittee on New Energy and the Working Group on Securing Costs for Decommissioning andDisposal of Renewable Power Generation Facilities and interim findings were published on December 10, 2019. The interim
report stated that (a) the amount to be reserved for projects approved prior to FY2019 for which the procurement price wasalready decided would be set at the level of decommissioning costs assumed upon calculation of the procurement price by the
Calculation Committee for Procurement Price, etc., (b) the amount of external reserves would be the product of multiplying astandard price (on a kWh/yen basis) equivalent to the aforementioned decommissioning costs per unit of power generated
adjusted for facility usage and the actual amount of electricity sold under the FIT scheme, and the funds should be reserved ona monthly basis starting 10 years before the end of the procurement period, and (c) private reserves would only be permitted if
operators prepared and published business plans, etc., for the implementation of long-term and stable power generation
6

projects and also met six other requirements, and the consideration of whether an operator was eligible to internally reserve
decommissioning costs in terms of financial and organizational integrity, etc. should consider the variety of business formats
adopted, including listed infrastructure funds. There was an argument at the eighth meeting of the Working Group on Securing
Costs for Decommissioning and Disposal of Renewable Power Generation Facilities held on October 19, 2020, that internalsavings could be permitted if the overall contact signed between a listed infrastructure fund and an approved power producer
included provisions indicating financial and organizational integrity, such as a fund flow demonstrating the same electricity
sale income used as the capital for both parties’ businesses, limitation on the termination of contracts from lessees, andrestrictions on other purposes for use of power generation facilities and land where the facilities are located as long as therequirements for listing the infrastructure fund are satisfied.
The 2020 Act on Renewal Energy Special Measures also includes a new section titled “Supply of Renewable Energy
through Market Transactions.” While a Feed-In-Premium (“FIP”) system will be put in place under this section, under the2020 Act on Renewal Energy Special Measures, the only projects that will be eligible for the existing FIT scheme will berenewable energy generators that meet the regional use requirements. The FIP scheme will allow renewable energy generators
to sell their electricity through a wholesale power exchange or over-the-counter transactions while receiving an additional
premium (defined as a “Subsidy for Supply Promotion” in the 2020 Act on Renewal Energy Special Measures), that is thedifference between the basic tariff (FIP price) (fixed) and a tariff based on market prices (reference tariff) (fixed for a given
period, sliding in the long term). The category to which the FIP scheme will apply is called the “subsidy category” and will be
designated by the Minister of Economy, Trade and Industry, respecting the opinion of the Procurement Price Calculation
Committee. However, the Interim Report by the Subcommittee on System Reform for Renewable Energy as Main Power
Source (hereinafter referred to as the “Subcommittee for Renewable Energy as Main Power Source”) under the Strategic
Policy Committee of the Advisory Committee for Natural Resources and Energy published in February 2020 described thesubsidy category subject to the FIP scheme as “energy sources that are expected to grow into competitive energy sources(competitive energy sources)” and “energy sources whose generation costs can be steadily reduced and energy sources thatcan be used as cheap energy sources” and specifies mega-solar projects and wind projects. Moreover, the discussions andinterim report of the subcommittee suggest that consideration is being given to making the reference price fixed for a given
period but variable in the long term to simultaneously ensure investment incentive and energy generation behavior consciousof market prices. However, the photovoltaic power generation facilities owned by CSIF have already started selling electricity
under the FIT scheme and, judging from discussions in the Subcommittee for Renewable Energy as Main Power Source andanswers in Diet deliberations, these facilities are likely to remain eligible under the current FIT scheme and there is unlikely tobe any transition to the FIP system. Therefore, even if eligibility for the FIT scheme is limited as described above, the feed-intariff prices of the photovoltaic power generation facilities owned by CSIF and currently in operation are unlikely to beaffected.
Finally, under the 2020 Act on Renewal Energy Special Measures, a new system for nullifying FIT/FIP approval of the
Minister of Economy, Trade and Industry for a project that has not started operation within a certain period of time after
approval (hereinafter referred to as “expiration of certification”) will be introduced from the viewpoint of freeing up grid
capacity reserved for projects that have not started operation for years. The period of time for FIP/FIT approvals to benullified is not specified in the 2020 Act on Renewal Energy Special Measures and will be prescribed in a METI ordinance.
However, the photovoltaic power generation facilities owned by CSIF have already started selling electricity under the FIT
scheme and even when the 2020 Act on Renewal Energy Special Measures goes into effect and expiration of certification is
introduced, certification of the photovoltaic power generation facilities owned by CSIF will not be nullified as a result.
(Note 1) “Renewable energy generation facilities, etc.” refers collectively to renewable energy generation facilities, and real estate, real estate leases(includes subleases) and land lease rights (hereinafter referred to as the “site, etc.”) necessary to install maintain and operate renewableenergy generation facilities. The same shall apply hereunder.
(Note 2) “Photovoltaic power generation facilities” refers, among renewable energy power generation facilities, to those that generate electricity
using sunlight as an energy source, and "wind power generation facilities" refers to those that generate power using wind power, among
other renewable energy power generation facilities.
“Photovoltaic power generation facilities, etc.” refers collectively to photovoltaic power generation facilities, and real estate, real estateleases (includes subleases) or land lease rights necessary to install maintain and operate photovoltaic power generation facilities. The same
shall apply hereunder.

c. Management Performance
During the previous fiscal period, CSIF did not acquire new photovoltaic power generation or other facilities. As a result, it
held a portfolio consisting of 21 facilities with a total panel output (Note 3) of 119.7 MW, a total acquisition price (Note 4) of¥48,850 million, and a total price (Note 5) of ¥49,580 million as of the end of the previous fiscal period. During the fiscal
period under review, CSIF acquired two facilities (total panel output of 3.3 MW and total acquisition price of ¥880 million) on
September 28, 2020, by using borrowings and cash on hand. As a result, it held a portfolio consisting of 23 facilities with a7total panel output of 123.05 MW, a total acquisition price of ¥49,405 million(Note 5), and a total price (Note 6) of ¥48,890
million as of the end of the fiscal period under review and continued to be a large operator among listed infrastructure funds.
(Note 3) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the maximum output stated in
specifications of solar cell module) used in each solar energy facility by the total number of panels. The same shall apply hereunder.
(Note 4) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and other acquisition expenses related to theacquisition of assets, property-related taxes, urban planning taxes, consumption taxes and other fees and charges) described in the sale andpurchase agreement pertaining to each asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply
hereunder.
(Note 5) The acquisition price of CS Mishiki Power Plant had reduced in the amount of 332 million yen on December 16, 2020, back from thesigning date of the Property Purchase Agreement(Note 6) “Price” shall mean the total intermediate value calculated by CSIF pursuant to paragraph 1, Article 41 of its Articles of Incorporation, using
the appraised value as of June 30, 2020, and December 31, 2020, in the range stated in the valuation report obtained fromPricewaterhouseCoopers Sustainability LLC. for the renewable energy power generation facilities at power plants from S-01 through S-18.
The appraised value of renewable energy power generation facilities at power plants from S-19 through S-23 is the total appraised value asof June 30, 2020, and December 31, 2020, stated as the median in the valuation report obtained from Ernst & Young Transaction Advisory
Services Co., Ltd. or EY Strategy and Consulting Co., Ltd. Ernst & Young Transaction Advisory Services Co., Ltd. was merged with EY
Advisory & Consulting Co., Ltd. and established as EY Strategy and Consulting Co., Ltd. on October 1, 2020.

d. Overview of Financing
CSIF borrowed ¥1,000 million on September 28, 2020, during the period under review. It also made a contractual
repayment of ¥789 million at the end of the period, and the amount of borrowings as of the end of the period under review
came to ¥26,042 million. Consequently, the ratio of interest-bearing debt to total assets (ratio of interest-bearing debt to total
assets at the end of fiscal period) was 55.3%.
CSIF received a credit rating and re-rating of its first unsecured Investment Corporation bonds from the following rating
agency on July 31, 2020.
Rating Agency

JCR

Rating Subject

RatingRating Outlook

Long-term Issuer Rating

A

StableA-

Rating Subject

RatingRating Outlook

Long-term Issuer Rating

A-

StableThe 1st Unsecured Investment Corporation Bond
(Specified investment corporation bonds with limited inter-bondpari passu clause and for qualified institutional investors only)

CSIF received a credit rating also from the following rating agency on August 7, 2020.
Rating Agency
Rating and Investment
Information, Inc. (R&I)

e. Overview of Business Performance and Distributions
As a result of the management described above, the business results in the fiscal period under review included operating
revenue of ¥2,413 million, operating income of ¥858 million, ordinary income of ¥717 million, and net income of ¥716
million mainly due to the impact of unseasonable weather and the revision of the purchase price of CS Mashiki-machi Power
Plant disclosed by CSIF on December 16, 2020.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation, CSIF shall
distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as defined in Article 67-15 of the
Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will generally be madein accordance with the cash distribution policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guidelines formulated as part of its internal regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow (hereinafter referred toas “FCF”) generated by its renewable energy power generation facilities, in amounts determined in the following manner. The
amount available for distribution shall be calculated by multiplying FCF, that is net cash flow (hereinafter referred to as“NCF”; CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal
periods in calculating NCF) to be vested to equity investors after deducting FCF payable to debt investors, by a certain ratio(hereinafter referred to as “payout ratio”; the payout ratio for the 7th fiscal period is 89.0%) determined by CSIF in light of theamount of NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In determining the payout ratio
described above, CSIF will consider the forecast NCF for each fiscal period to realize that level of distributions.
8In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess of earnings foreach fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the case where NCF
calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”; CSIF shall incorporate thetotal amount of NCF remaining after deducting distributions for the preceding fiscal periods in calculating actual NCF)
exceeds NCF projected for the fiscal period (hereinafter referred to as “projected NCF”; CSIF shall incorporate the total
amount of NCF remaining after deducting distributions for the preceding fiscal periods in calculating projected NCF) on thebasis of an energy output value projected by professional specialists (P50) which forms the foundation for the calculation ofrents with regard to the renewable energy power generation facilities, CSIF intends to limit the cash distribution to the amountof projected NCF multiplied by the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends to make a cash
distribution for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF decided to make a distribution for the fiscal period under review of ¥855,403,000,
equivalent to 89.0% of projected NCF for the period (¥960,272,000), of which distribution in excess of earnings is¥138,945,190 after deducting dividends for the period of ¥716,457,810. Dividend per investment unit is ¥3,700 for the fiscal
period under review.
II. Outlook for the Next Fiscal Perioda. Outlook for the Future Management
The Japanese economy was overwhelmingly affected by the COVID-19 pandemic in 2020. The growth rate in fiscal 2020 isforecasted to be -5.5% year on year, which may reflect an adverse impact of approximately ¥30 trillion yen in terms ofmonetary value. In late December 2020, the working group of the Ministry of Health, Labour and Welfare (MHLW)
instructed local governments to prepare for vaccinating health care providers in direct contact with COVID-19 patients in late
February at the earliest and older people aged 65 and above comprising approximately 70% of those subject to priority
vaccination in late March at the earliest. However, COVID-19 vaccination poses a number of challenges, includingtransportation at an extremely low temperature and scheduling a large number of vaccinations in a short period of time.
Therefore, effective vaccines are expected to become widely available in Japan and overseas in the latter half of 2021 or early2022 and restrictions such as social distancing are likely to be lifted in the first half of 2022. With this outlook, real GDP is
projected to grow approximately 3.4% year on year in 2021, assuming that COVID-19 measures will continue around theworld. Economic recovery is expected to be slow despite a stimulus through public investment in national resilience as part of
the government’s economic measures, which will likely be insufficient to offset a fall in the previous year. The composition ofhousehold expenditures is predicted to change dramatically due to restricted outings during the COVID-19 crisis. Somechanges due to an increase in people working from home and online consumption will presumably continue after the
pandemic subsides.
Residents in 11 prefectures, including Fukui Prefecture, filed a lawsuit against the government, claiming that the decision of
the Nuclear Regulation Authority that the earthquake resistance of Units No. 3 and No. 4 at the Oi Nuclear Power Plant (Oi,Fukui Prefecture) of Kansai Electric Power Company conformed to the new standards was wrong. The Osaka District Court
ruled that the approval was illegal and rescinded the permission. The Osaka District Court stated that the decision of the
Nuclear Regulation Authority was an inexcusable mistake that resulted from the omission of necessary examination based on
the assumption of earthquake-level disasters. Meanwhile, the government was dissatisfied with this ruling of the Osaka
District Court and appealed to the Osaka High Court on December 17. Attention must be paid to trends in provisional
dispositions and litigation related to the prohibition of nuclear power plant operation, including an opposition hearing at theHiroshima High Court seeking rescindment of a provisional disposition to suspend the operation of the Ikata Nuclear Power
Plant of Shikoku Electric Power Company and a lawsuit at the Osaka District Court seeking the suspension of operation of all
nuclear power plants in operation of Kansai Electric Power Company.
With respect to the environment surrounding photovoltaic power generation facilities that are included in renewable energy
power generation facilities, as stated in “(I. Overview of the Fiscal Period under Review) b. Investment Environment” above,
the output curtailment that requires renewable energy power generation operators to temporarily suspend power generation
through photovoltaic power generation facilities, etc. was resumed in areas under the jurisdiction of Kyushu Electric Powerfrom October 2019. However, if renewable energy adoption continues to expand in the future, output curtailment may also be
implemented in other regions besides the Kyushu region such as the Tohoku region and the Chugoku region.
Meanwhile, installation of anti-terrorism facilities known as facilities for dealing with specific severe accidents in Units No.
1 and No. 2 of the Sendai Nuclear Power Plant of Kyushu Electric Power Company was completed and power generation
resumed on November 19, 2020, and December 24, 2020, respectively. The periodic inspections of Unit No.3 of the Genkai
9

Nuclear Power Plant were completed and operation resumed on November 23, 2020. Periodic inspections of Unit No. 4 of the
Genkai Nuclear Power Plant started on December 19, 2020, and the reactor will stop for approximately three months.
Because Prime Minister Yoshihide Suga declared the goal of achieving carbon neutrality (a decarbonized society) by 2050
(2050 Carbon Neutral Goal) at the 203rd extraordinary session of the Diet held on October 26, 2020, activities associated withthis goal have been progressed. The Prime Minister stressed that the key was innovation, including next-generation solar cells
and carbon recycling and that the government would increasingly encourage for R&D in view of practical use. He alsoemphasized the government’s plans to save energy, maximize the introduction of renewable energy, and implement nuclear
power policies prioritizing safety to establish a stable energy supply and to dramatically change its policy of coal power
generation that Japan had continued for many years. In addition, the Prime Minister instructed all Cabinet members to work
together to achieve the 2050 Carbon Neutral goal and the central and local governments to hold growth strategy meetings anddiscussions at new places shared between them in an effort to accelerate the improvement of long-term strategies based on anti
-global warming plans, basic energy plans, and the Paris Agreement. Japan’s medium-term goal for greenhouse gas emissions
is a 26% reduction of greenhouse gas emissions (the amount in 2013) by 2030 and its long-term goal is a 80% reduction (noreference year) by 2050.
The government held its sixth growth strategy meeting on December 25, 2020, and announced the Green Growth Strategy
associated with the 2050 Carbon Neutral goal. According to the strategy, the reference values for the energy mix for achieving
the carbon neutral goal included an increase of 30% to 50% in demand for electric power, the component ratio of renewableenergy, of which introduction will be maximized, of approximately 50% to 60%, that of thermal power from hydrogen andammonia of approximately 10%, and thermal power generation on the assumption of collecting nuclear power and CO2 of
30% to 40%. The strategy related to off-shore wind power generation is characterized by the clear commitment of thegovernment to its introduction targets (10 GW in 2030 and 30 GW to 45 GW in 2040) and the mention of the revision ofsystem operation rules to allow the priority of connecting renewable energy and the start of specific consideration ofdeveloping systems, such as direct current power transmission.
Kono, Minister for Administrative Reform and Regulatory Reform, convened a taskforce to conduct the first and second
inspections of regulations on renewable energy on December 1 and December 25, 2020. This taskforce requested therelaxation and abolition of a number of regulations concerning locations, systems, markets, coexistence with local
communities, and other fields. The government plans to inspect all regulations that become a barrier in making renewableenergy the main power source and maximizing its introduction, which comprise improvements in achieving a carbon neutral
society by 2050, make the necessary regulatory revisions, and accelerate these revisions.
As described in “b. Investment Environment” under “I. Overview of the Fiscal Period under Review” above, the discussion
on the power producer-side base charges resumed at the System Design Specialist meeting of the Electricity and Gas Market
Surveillance Commission held on December 15, 2020. Industrial associations related to renewable energy attended thismeeting, received a report on former proposals for the power producer-side base charges, and started discussing the detailed
design of the charges.
As described in “b. Investment Environment” under “I. Overview of the Fiscal Period under Review” above, there was anargument on the system to secure reserves for the expenses for the disposal of photovoltaic power generation facilities at theeighth meeting of the Working Group on Securing Costs for Decommissioning and Disposal of Renewable Power Generation
Facilities held on October 19, 2020, that internal saving could be permitted if the overall contact signed between a listed
infrastructure investment corporation and an approved power producer included provisions indicating financial andorganizational integrity, such as a fund flow demonstrating the same electricity sale income used as capital for both parties’
businesses, limitation on the termination of contracts from lessees, and restrictions on other purposes of use of power
generation facilities and land where the facilities were located as long as the requirements for listing the infrastructure fund aresatisfied. Concerning the timing of implementation, July 1, 2022, was mentioned as the earliest timing for a business to start
the saving.
As stated in “b. Investment Environment” under “I. Overview of the Fiscal Period under Review” above, the Act of Partial
Revision of the Electricity Business Act and Other Acts for Establishing Resilient and Sustainable Electricity Supply Systems(“Energy Supply Resilience Act”), which includes the revision of the Act on Special Measures Concerning Procurement ofElectricity from Renewable Energy Sources by Electricity Utilities (“Act on Renewal Energy Special Measures”), taking into
account the dramatic reform of the FIT scheme, was established in June 2020, and the new FIP scheme would be establishedin April 2022 in addition to the FIT scheme. The joint meeting of the Subcommittee on Large-Scale Integration of Renewable
Energy and Next Generation Power Network and the Subcommittee on Making Renewable Energy the Main Energy Source iscurrently discussing the detailed design of the FIP scheme and concluding that views such as the status (power generation
characteristics, scale, and domestic and overseas cost trends) and business environment (trading conditions in the wholesale
electricity trading market and aggregator trends) of each power source may be used as a reference when determining the10categories and other details of the FIT scheme. The 2020 Revised Act on Renewal Energy Special Measures that will takeeffect in April 2022 states that the opinions of the Procurement Price Calculation Committee on the subsidy categories(categories to which the FIP scheme will apply), subsidy categories subject to bidding, basic tariffs (FIP prices), and subsidy
periods (assistance periods) in the FIP scheme scheduled to start in April 2022 shall be heard and respected.
b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical integration model thathas developed mainly in the photovoltaic power generation market in Europe and America and applies this model in the global
market, including Japan. CSIF considers that mutual cooperation between the Group and CSIF (engaging in investment in andmanagement of photovoltaic power generation facilities) through the Sponsor Group based on the vertical integration modelfor the construction of the value chain with the aim of creating mutual value should lead to the enhancement of value forunitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right granted by the Sponsor
Group and acquiring photovoltaic power generation facilities, etc. whose value is high from the pipelines of the Sponsor. In
addition, CSIF will aim to acquire photovoltaic power generation facilities, etc. held by persons other than the Sponsor Groupby utilizing the Sponsor Group’s networks of brokers and power producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose companies (they may behereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor has entered into the asset management service
agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafter referred to as “CSOM Japan”) and (iv) special purpose companies,
partnerships or other funds in which the Sponsor or its subsidiary own a majority interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquartered in Canada) at the top towhich the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor and provides
O&M services in Japan, in principle, for the availability of homogeneous O&M services to the extent that CSIF considers
essential. CSIF aims to thereby reduce the operational risk and operating costs by utilizing the services of CSOM Japan andplacing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global monitoring platform of
the Sponsor Group in the early discovery and repair of failures of power generation facilities, CSIF will aim to reduce the lossof power generation. In addition, CSIF will implement the appropriate repair and facilities replacement of assets undermanagement to maintain and enhance the value of assets from the medium- to long-term perspective, thereby securing stablerevenue in the medium to long term.
In response to the output curtailment implemented by Kyushu Electric Power described in “b. Investment Environment”
under “I. Overview of the Fiscal Period under Review” above, CSIF performed construction for online output curtailment(output curtailment of photovoltaic power generation facilities with a remote output controller installed; the same will apply
below) of CS Mashiki-machi Power Plant, the largest asset in its portfolio. While CS Mashiki-machi Power Plant is subject tothe 30-day rule for output curtailment, the above construction in September 2020 required for online output curtailment allows
a shift from the previous all-day curtailment to hourly curtailment and reduction of a decrease in lease revenue caused byoutput curtailment. In addition, curtailment within a day is counted as one day regardless of the duration, which allows thepower plant to respond to output curtailment during peak demand for electricity while complying with the 30-day rule. CS
Minami Shimabara-shi Power Plant (East) and CS Minami Shimabara-shi Power Plant (West) also plan to shift to the same
online method of output curtailment at the end of January 2021.
As part of its activities related to the Principles for Responsible Investment (UN PRI), the Asset Manager signed the UN
PRI on August 13, 2019, and established the Approach to the Principles for Responsible Investment at the end of December
2020 as the basic ESG policy of the Asset Manager. CSIF obtained the following evaluation from the Japan Credit Rating
Agency, Ltd. (JCR) regarding the green finance framework in order to apply for external certification and assessment for its
ESG.
Date of
Evaluation

Evaluating Agency

May 11, 2020

JCR

Evaluation
OverallGreenness (use of proceeds)
Management, Operation and Transparency
11

Green 1 (F)g 1 (F)
m 1 (F)

(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider financing by public
offering, borrowings and other means in the acquisition of new assets, while watching changes in the financing environment
closely.
c Forecasts of Management Status
The forecast of management status for the fiscal period ending June 30, 2021 (January 1, 2021 to June 30, 2021), the fiscal
period ending December 31, 2021 (July 1, 2021 to December 31, 2021) and the fiscal period ending June 30, 2022 (January 1,
2022 to June 30, 2022) is as follows. For details of the assumptions underlying the forecast of management status, please refer
to “Assumptions Underlying Forecast of Management Status for Fiscal Period Ending June 30, 2021 (January 1, 2021 to June30, 2021), the fiscal period ending December 31, 2021 (July 1, 2021 to December 31, 2021) and the fiscal period ending June30, 2022 (January 1, 2022 to June 30, 2022)” described on or after page 16 below.

Fiscal period ending
Jun. 2021
Fiscal period ending
Dec. 2021
Fiscal period ending
Jun. 2022

Operatingrevenues

OperatingincomeOrdinary
incomeNet income

Distributions
per unit(excluding
distributions
in excess ofearnings)

million yen

million yen

million yen

million yen

yen

yen

yen

3,337

1,315

862

861

2,207

1,493

3,700

3,739

1,440

1,212

1,212

3,106

644

3,750

3,715

1,395

1,176

1,176

3,014

736

3,750

12

Distributions inexcess of
earnings per unit

Distributions
per unit(including
distributions inexcess of
earnings)

III

Facts arising after the settlement of accounts(ⅰ) Issuance of Investment Corporation Bonds (Green Bonds)
CSIF issued investment corporation bonds (“Green Bonds”) based on the shelf registration for its issuance ofinvestment corporation bonds filed to Kanto Local Finance Bureau as of June 26, 2020.
① NameCanadian Solar Infrastructure Investment Corporation / The 1st
Unsecured Bond (Green Bonds)② Total issue amount

3,800 million yen③ Form of the bond certificate

Subject to the provisions of the Act on Book-Entry Transfer ofCompany Bonds, Shares, etc. bond certificates will not be issued.

④ Issue price

100 yen per par value of 100 yen for each bond

⑤ Redemption price

100 yen per par value of 100 yen for each bond

⑥ Interest rate

0.80% per annum⑦ Denomination of each bond

100 million yen⑧ Offering method

Public offering⑨ Offering period

January 20, 2021

⑩ Payment date

January 26, 2021

⑪ Collateral / Guarantee

No collateral or guarantee is provided for the Green Bonds.
None of CSIF’s assets are secured for the Green Bonds.

⑫ Redemption method anddate

The total amount of the Green Bonds will be redeemed on January
26, 2026 (5-year bond) Early redemption is possible any time after thepayment date,except for the case separately determined by the depositary.

⑬ Interest payment date

January 26 and July 26 of every year (When an interest paymentdate falls
on a bank holiday it will be moved to the preceding business day. Initialinterest payment date will be July 26, 2021)⑭ Credit rating

A (Japan Credit Rating Agency, Ltd.)⑮ Special financial covenant

Collateral provision restriction clause is added.

⑯ DepositaryJapan Securities Depositary Center, Inc.

⑰ Fiscal agent, issuing agent

Mizuho Bank, Ltd.

and payment agent⑱ Underwriter for private

Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc.

placement(ⅱ) Issuance of New Investment Units and Secondary Offering of Investment Units
CSIF announced that, at a board of directors’ meeting held on February 17, 2021, it resolved to issue new investment units of
CSIF (“Investment Units”) and conduct a secondary offering as follows.
Issuance of new investment units through public offering(1)

Number of investment units to be

151,500 units

offeredCSIF expects to offer 96,960 units for the Japanese Public Offering andSpecific purpose of use and scheduled

All of the net proceeds from the Japanese Public Offering and International

outlay period of proceeds

Offering shall be used for a part of the fund for the acquisition of specified

54,540 units for the International Offering,(2)

assets scheduled to be acquired by CSIF as announced in the “NoticeConcerning Domestic Project Acquisitions and Leasing” (“AnticipatedAcquired Assets”) and for a part of the prepayment of the existing debt .
Secondary offering of investment units through Over-Allotment(1)

Number of investment units to be

7,575 units

offered in the secondary offering

A Japanese Underwriter of the Japanese Public Offering, will make asecondary offering in Japan up to 7,575 units of the Investment Units
borrowed from Canadian Solar Projects K.K. ., taking into account market
demand and other conditions for the Japanese Public Offering.
13

(2)

Specific purpose of use and

The net proceeds from the issuance of new investment units through thescheduled outlay period of proceeds

Third-Party Allotment shall be used for partial payment for the futureacquisition of specified assets or partial repayment of borrowings.

(ⅲ）Borrowings
Canadian Solar Infrastructure Fund, Inc. (“CSIF”) hereby announces its decision to borrow funds (total borrowings of 19,300
million yen,the “Borrowings”).
To fund a part of the anticipated acquisition of assets and other related costs as separately released in the “Notice Concerning
Domestic Project Acquisitions and Leasing”
2. Details of the Borrowings
Type(Note 1)

Anticipated Interest Rate
Finaicial institution

Long
-term

Syndicate of lenders
arranged by Shinsei
Bank, Limited,
Sumitomo Mitsui
Banking
Corporation, andMizuho Bank, Ltd.
as arrangers, MUFG
Bank, Ltd. and
Sumitomo Mitsui
Trust bank.Ltd.as a
co-arranger

Long
-term

Syndicate of lenders
arranged by Shinsei
Bank, Limited,
Sumitomo Mitsui
Banking
Corporation, andMizuho Bank, Ltd.
asarrangers

Borrowing(Note 2)

Amount(Note 3)¥17
billion(Note 6)

Base rate
plus
0.45%

Drawdown DateMarch
8, 2021

Repayment
Maturity Date

MethodUse of funds

Condition(Note 4)10 years fromdate of loan
disbursements

To be applied to
the fund for
acquisition of UnguarantPartialprojects
eed,unsec
installment
anticipated to be ured.
s (Note 7)
acquired and (Note5)
related costs
and expenses

To be applied¥2.3
billion(Note 8)Base rate
plus
0.20%

March
8, 2021

for payment
The earlier dateof (i) March 8,of2023 or (ii) the
consumption Unguarantfirst interest
Lump-sum
eed,unsec
taxes inpayment datepayment relation to theured.
after the(Note5)anticipatedconsumption tax
acquisitions andrefund daterelated costs
and expenses(Note 1) Long-term refers to borrowings that have a period of over a year from the date of loan disbursement to the date of maturity.
(Note 2) Does not include financing-related costs paid to the financial institutions.
(Note 3) The base rate refers to the Japanese yen TIBOR (Tokyo Interbank Offered Rate) announced by the General Incorporated Association JBA
TIBOR Administration.
(Note 4) We can make an early repayment of all or part of our borrowings subject to certain conditions, such as prior written notice to the relevant
financial institutions.
(Note 5) We expect our loan agreements to contain restrictive covenants, including the maintenance of certain LTV ratio (based on project valuation
report amount), debt-to-equity and debt service coverage ratios and restrictions on our ability to grant security interests in connection with otherindebtedness. Breaches of such covenants could result in, among other things, restrictions on our ability to incur new debt and our being
required to grant security interests in favor of the lenders. See “Our Business—Financing Policies—Fixed Interest Ratio and LTV Ratio”.
(Note 6) Borrowing amount (scheduled) as of the date of this offering circular. The borrowing amount may change after consideration of the amount ofproceeds we receive in connection with the offerings, among other factors.
(Note 7) We intend to enter into balloon amortization loans, which has an initial principal repayment date of June 30, 2021, and subsequent principal
repayment dates will be the last day of June and December (a principal repayment date on a non-business day is moved to the following
business day or the immediately preceding business day in case the following business day falls in the following month), and the remaining
principal will be repaid as a balloon payment on the maturity date. See “Our Business—Financing Policies—Debt Sculpting”.
(Note 8) We intend to enter into this loan for payment of the consumption tax incurred in connection with the acquisition of the anticipated acquisitions,and which we intend to repay with the consumption tax refund to which we are legally entitled. See “—Factors Affecting Our Results ofOperations—Other—Consumption Tax Refund” above.

14

(ⅳ)Domestic Project Acquisitions and Leasing
CSIF will acquire the assets below on March 8, 2021, in accordance with the basic policy of asset management defined in theterms and conditions of CSIF, upon obtaining the approval of CSIF’s board of directors’ meeting on February 17, 2021.
Asset no.
(Note 1)
S-24
S-25

Name of project(Note 2)Type of asset

Location(Note 3)

CS Hiji-machi Dai-ni

Trust beneficiary

Hayami-gun,Power Plant

interestOita

CS Ōgawara-machi

Trust beneficiaryŌgawara-Power Plant

interest

machi, Miyagi

Acquisition price (JPY
million) (Note 4)

Total

27,851
2,745

SellerLOHAS ECE2
G.K..
Tida Power 45
G.K.

30,596(Note 1) Asset number is assigned to the projects to be acquired, based on the classification of the renewable energy. “S” denotes a solar energy
project.
(Note 2) “CS” is the abbreviation for Canadian Solar.
(Note 3) Based on the land or a parcel of the land upon which the solar energy facility is located, as described in the property registry. The
address is described up to the city or district level.
(Note 4) Anticipated acquisition price is as described in the purchase agreements (excluding acquisition expenses such as the payment ofoutsourcing service fees related to acquisition, property-related taxes, urban planning taxes, consumption taxes and other fees).

(ⅴ) Proposed Amendments to Articles of Incorporation and Election of Directors
CSIF's Board of Directors has decided to submit the following proposals to amend its Articles of Incorporation (AOI) andelect Directors at its March 30, 2021 Shareholder Meeting. The amended AOI and the election of Directors will become
effective upon shareholder approval at the Shareholder Meeting.
Proposals
1. Purpose of the Proposed Amendments to the AOI
2. Election of one Excecutive Director
3. Election of one Alternative Executive Director
4. Election of two Surervisory Directors

15

Assumptions Underlying Forecast of Management Status for Fiscal Period Ending June 30, 2021 (January 1, 2021 to June 30, 2021),
Fiscal Period Ending December 31, 2021 (July 1, 2021 to December 31, 2021) and Fiscal Period Ending June 30, 2022 (January 1,
2022 to June 30, 2022)
Item

Assumptions
・ 8th fiscal period :from January 1, 2021 to June 30, 2021 (181 days)

Calculation period

・ 9th fiscal period :from July 1, 2021 to December 31, 2021 (184 days)
・ 10th fiscal period :from January 1, 2022 to June 30, 2022 (181 days)
Assumptions are based on the sum of 23 domestic solar energy projects CSIF currently owns(“Acquired Projects”) to date and 2 additional projects anticipated to be acquired on March 8,2021 (“Additional Projects”); totaling 25 projects (“Projects Held”) and beneficiary interest,
which holds solar power generation facilities in trust. Please refer to the “Notice Concerning
Domestic Project Acquisitions and Leasing”, released as of this day for more information.
・ These forecasts are based on the assumption that there shall have been no changes in thecomposition of CSIF’s portfolio (such as acquisition of new assets and dispositions of Projects
Held, etc.) until the end of the 10th fiscal period, June 30, 2022.
・ CSIF’s portfolio may change, however, due to the acquisition of new assets other than the
Additional Projects or disposal of the Projects Held, among other cases.
・ Among the operating revenues of the Projects Held, revenues are calculated based on the leaseagreements of the Acquired Projects that are in effect as of today and the lease agreements thatwill become effective as of the anticipated acquisition date for the Additional Projects. CSIF’s
leasing structure for its solar energy projects will be comprised of basic rent and variable rent asfollows. Revenue forecasts for the 8th, 9th and 10th fiscal periods are ¥3,337 million, ¥3,739
million and ¥3,715million, respectively.
a) Basic rent for the Acquired Projects and Additional Projects are calculated as follows:・

PortfolioMonthly projected energy output (P50) x (100-Y)% x 70% x FIT purchase price
Monthly projected energy output (P50) (Note 1) (Note 2) refers to such figure disclosed in thetechnical reports (an evaluation report of the system, the capacity, the relevant contracts attachedand continuity (performance degradation and environmental evaluation) of the solar energy
facility) that Canadian Solar Asset Management K.K., the asset manager of CSIF (the “AssetManager”) received from E&E Solutions Inc. with respect to the Acquired Projects andAdditional Projects. Monthly projected energy output (P50) x (100-Y) % (Note 3) represents theamount after deduction of fees CSIF pays to the operators and fees regarding management of thelessee.
b)

Variable rents for the Acquired Projects and Additional Projects are calculated asfollows:
Operating revenues

Monthly actual energy output x (100-Y) % x FIT purchase price – basic rent
Any amount that exceeds the basic rent after multiplying a certain rate of (100-Y) % to themonthly actual energy output from the Acquired Projects and Additional Projects by FITpurchase price will be captured as a performance-related variable rent. In any case, if thecalculation of the variable rent is a negative number, it shall be deemed to be zero.
(*Note 1) Projected energy output (P50) represents the output that is viewed to be achievable with a 50%
probability by the third-party providers of the technical reports and other experts. The same applies
hereinafter.
(*Note 2) The calculation of the Additional Projects is based on the estimated monthly power generation (P50)
presented in the Technical Report, after deducting the rate of output curtailment from third party
research firm.
(Note 3) Y represents the value for management costs of the lessees and operator remuneration fees. The value ofY will vary for Acquired Projects and Additional Projects.

・ Forecasted figures herein have been based on a projected energy output (P50) and are notguaranteed nor do they reflect the actual energy output, which will vary depending on the levelof solar irradiation.
・ CSIF has assumed no cancellations of the lease agreements or delinquencies or non-payment ofrents by lessees.
・ CSIF has assumed that the current lease agreements for the Acquired Projects and the leaseagreements that will become effective as of the anticipated acquisition dates for the Additional
Projects will be renewed on equal terms under these agreements.

16

Item

Assumptions
Among the operating expenses of the Projects Held, operating expenses other than depreciation
costs have been accounted for based on past figures for Acquired Projects and figures provided
by each owner at the time of acquisition of Additional Projects and estimates fromsubcontractors, etc., taking into account variables. Such costs for the 8th, 9th and 10th fiscal
periods are assumed to be ¥729million, ¥826million and ¥845million, respectively.
・ Property-related taxes for the Additional Projects will be paid by CSIF and the owner at thetime of acquisition on a pro rata basis from the acquisition date to the end of the calendar year.
The adjustment amounts for the Additional Projects will be incorporated into the acquisition
costs and will therefore not be recognized as a part of the operating costs for 2021. Propertyrelated taxes of Acquisition Projects and Additional Projects thereafter will be expensed fromthe 8th fiscal period and is assumed to be ¥4million, ¥4million and ¥5million for the 8th, 9th
and 10th fiscal periods, respectively.
・ Periodic payment of repair and maintenance costs based on the figures provided in the technicalreports and the Asset Manager's estimate have been taken into account. However, these figures
are subject to revisions as the actual figures can vary significantly depending on the operating
period and are paid in irregular intervals, in addition to any instances where unexpected repairs
are required.
・ CSIF expects to pay be ¥200million, ¥225million and ¥225million for the 8th, 9th and 10th
fiscal periods, respectively, as O&M fees.
・ CSIF assumed it will incur expenses related to land lease in the amounts of ¥53million,¥58million and ¥58million for the 8th, 9th and 10th fiscal periods, respectively, in connection
with the Projects Held.
・ CSIF has assumed that it will incur depreciation expenses, including certain ancillary expensesof ¥1,292million, ¥1,473million and ¥1,474million for the 8th, 9th and 10th fiscal periods,
respectively. These figures are calculated using the straight-line method.
・ CSIF has assumed the cost of ¥81million for the 8th fiscal period, in connection with theissuance of the investment units resolved at CSIF’s board of directors’ meeting held today.
・ CSIF has also assumed interest expenses, interests on investment corporation bonds and otherborrowing-related expenses of ¥371million, ¥227million and ¥218million for the 8th, 9th and10th fiscal periods, respectively.
・ CSIF’s balance of interest-bearing debt totals ¥27,142million (borrowings and investment
corporation bonds) as of today. It is assumed that repayments of ¥6,868million by the end of the
8th period and, ¥1,141million and ¥1,135million at the end of the 9th and 10th fiscal periods,
respectively, under the terms of agreement.
・ It is assumed that borrowings of totally ¥19,300 million will be made on March 8, 2021 from
Qualified Institutional Investors as defined in the Article 2 (3) (i) of the Financial Instruments
and Exchange Act (limited to institutional investors prescribed in Article 67 (15) (1) (i) (b) (2)of the Act on Special Measures Concerning Taxation)
・ The proceeds that come from up to 7,575new investment units through a third-party allotment
written below are to be applied to a part of an acquisition of specified assets in the future or a
repayment of debt.
・ CSIF anticipates that its LTV (loan-to-value) ratio will be approximately 52.00%, 51.48%and
50.98% as of the end of for the 8th, 9th and 10th fiscal periods, respectively
・ CSIF calculates LTV using the following formula.
LTV = Total interest-bearing debt / Total assets × 100
・

Operating expenses

Non-operating expenses

Borrowings

17

Item

Assumptions
In addition to the 231,190 units issued and outstanding as of today, CSIF has assumed that a
total of 159,075 units will be issued, consisting of 151,500 new investment units by a public
offering and up to 7,575new investment units through a third-party allotment, which wereresolved at a meeting of its board of directors held today. Please refer to the “Notice Concerning
the Issuance of New Investment Units and Secondary Offering of Investment Units”, released
today for more information.
・ CSIF has assumed that, except for those set forth above, there will be no changes to the numberof units issued and outstanding resulting from the issuance of additional investment units, etc.,
until the end of the 10th fiscal period ending June 30, 2022
・ CSIF has assumed that, except for those set forth above, there will be no changes to the numberof units issued and outstanding resulting from the issuance of additional investment units, etc.,
until the end of the 10th fiscal period ending June 30, 2022
・ Distributions per unit (excluding distributions in excess of earnings), distributions in excess ofearnings per unit and distributions per unit (including distributions in excess of earnings) havebeen calculated based on the assumption that the number of units issued and outstanding as ofthe end of each fiscal period will be 390,265 units, including the upper limit of investment units(total 159,075 units) to be issued as stated above.
・

Number of investment units

・ Distributions per unit (excluding distributions in excess of earnings) are calculated based on theDistributions per unit
(excluding distributions inexcess of earnings)

cash distribution policy prescribed in CSIF’s Articles of Incorporation.
・ Changes in lessees, fluctuations in rental revenues due to changes in lease agreements,
fluctuations in energy output, unforeseeable repair and maintenance expenses incurred and otherfactors may lead to changes in the amount of distributions per unit (excluding distributions inexcess of earnings).
・ Distributions in excess of earnings per unit will generally be based on the cash distribution
policy prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset
management guideline.
・ CSIF intends to make cash distributions to its unitholders for each fiscal period using cash flow
generated by the renewable energy projects (the “Free Cash Flow” or “FCF”) (Note 1). The
amount available for distribution shall be calculated by multiplying FCF less any amountpayable to debt investors (the “Net Cash Flow”, or “NCF”.CSIF will incorporate the total
amount of net cash flow remaining after deduction of distributions from the preceding fiscal
periods in calculating the net cash flow) (Note 2) with the applicable payout ratio, which will be
determined by CSIF at its discretion for each fiscal period. Further, CSIF intends to make
distributions in excess of earnings for each fiscal period in order to realize such policy.
・ CSIF intends to maintain distributions per unit including distributions in excess of earnings in
the 8th fiscal periods around ¥3,700. Distributions in excess of earnings are assumed to be¥1,493 in the 8th period. Distributions per unit including distributions in excess of earnings in
the 9th period and in the 10th period are ¥3,750. Distributions in excess of earnings are assumed

Distributions in excess ofearnings per unit

to be ¥644 in the 9th period and ¥736 in the 10th period. Distributions including distributions inexcess of earnings shall be calculated by multiplying anticipated NCF at the beginning of eachperiod with certain fixed ate.The rate is to be decided considering related anticipated NCF at the
begining of eash period,and is assumed to be 92.3% in the 8th fiscal period.
・ Taking the economic environment, market environment of renewable energy power plantbusiness and financial condition of CSIF, etc. into account, CSIF can choose not to make
distributions in excess of earnings in order to spend for repair and capital expenditure, repay theborrowings, apply to a new asset acquisition and acquire own investment units, etc.
・ Since distributions in excess of earnings accompany decrease of a cash position, the possibilityof shortages of a cash position and the financial restriction for a swift assets acquisition canoccur when CSIF needs to spend for capital expenditure more than estimated because of
unexpected events.
(*Note 1) Free Cash Flow (FCF): Rent revenues minus expenses related to rent business and capital expenditures related
to assets. Expenses related to rent business include all cash expenses related to operation, including payment ofasset management fees and administrative service fees, but exclude interest payments related to interest-bearing
debt or other financing-related expenses.
(*Note 2) Net cash flow (NCF) for the applicable period: Free Cash Flow minus interest payments related to interestbearing debt and repayments of interest-bearing debt for the relevant fiscal period plus total amount of net cash
flow remaining after deduction of distributions from the preceding fiscal periods.

18

Item

OthersAssumptions
・ CSIF has assumed that no revisions that will impact the above projections will be made to laws
and regulations, tax systems, accounting standards, securities listing regulations and the rules of
The Investment Trusts Association, Japan, among others.
・ CSIF has assumed that no unforeseeable significant changes will occur in general economic
trends or conditions in the solar energy facility market and the real estate market.

19

(2) Risk of Investment
The following describes important changes and additions made to the descriptions of investment risks presented in thesection, (1) Risk Factors, 3. Investment Risks, I. Overview of the Fund, Part 1. Fund Information, in the recent securities
report (submitted on September 28, 2020). The sentences that have been revised are underlined.
(1) Risk factors(omitted)
A. Risks associated with the salability of the investment securities or the Investment Corporation Bonds(omitted)(iv) Risks associated with changes in income and expenditure
The income of CSIF relies on lease revenue from photovoltaic power generators and other facilities. CSIF, in some cases,
acquires beneficial interests in trust with photovoltaic power generators and other facilities as the principal trust property.
In that case, CSIF receives trust dividends from the trustee of the trust of the photovoltaic power generators and otherfacilities (hereinafter referred to as the “Trustee”; the same applies to the section (1) Risk factors below). The source of thetrust dividends is the lease revenue that the Trustee receives by leasing the photovoltaic power generators and otherfacilities to a lessee. As in the case where CSIF operates its own power generation facilities, it is affected by the status offacility operation and changes in lease fees caused by an increase or decrease in electricity sale income.
(omitted)
2. Risks associated with the investment policy of CSIF
(i) Risks associated with specializing in investment in renewable energy power generation facilities(omitted)b. Risks associated with the reliance of CSIF’s income on lease fees based on electricity sale income from renewable energy
power generation facilities
CSIF invests primarily in renewable energy power generation facilities or beneficial interests in trust for trusting renewableenergy power generation facilities. Lease income from renewable energy power generation facilities or trust dividends
from the Trustee are based on electricity sale income received by the lessee by supplying electricity generated from therenewable energy power generation facilities to power companies that buy the electricity. The lease income or trust
dividends of CSIF from the Trustee may be reduced or suspended if the electricity sale income has decreased or been lost
due to damage or malfunctioning of the power generation facilities as the amount of lease fees particularly of its own assets
is linked to the electricity sale income to an extent.
An increase in expenses for the operation and maintenance of the renewable energy power generation facilities causes a
decrease in the value of these facilities. A loss on impairment of fixed assets may have to be posted or the working assetsof CSIF may not be sold at the time or under conditions that it requests even if it wishes to sell them. In addition, the lease
fees may be reduced after consultations with the lessee.
Therefore, CSIF may be affected significantly by the electricity sale income of the lessee from its power generation
business.
c. Risk that renewable energy power generation facilities conforming to the investment policy of CSIF are limited
Because CSIF limits its principal investments to renewable energy power generation facilities and beneficial interests intrust of renewable energy power generation facilities, facilities for its acquisition may decrease or become unavailable in
the future without an increase in the installation of facilities conforming to its investment policy due to location, institution,or other reasons.
The purchase (procurement) price in the feed-in tariff (FIT) program has been decreasing every year. In particular, the Act
on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities
revised in April 2017 (hereinafter referred to as the “2016 Act on Renewable Energy Special Measures”) set medium- tolong-term purchase price targets and introduced a bidding system to promote cost reduction to control burdens associatedwith the introduction of renewable energy. The Minister of Economy, Trade and Industry is expected to listen to theopinions of the Calculation Committee for Procurement Price and set medium- to long-term purchase price targets.
Measures, including the reduction of procurement prices to achieve the targets, are expected to be taken. The fall in the
procurement price will continue through these measures and may be reduced in the future. The supply promotion subsidy(premium) in the FIP program established by the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities revised based on the Act on Partial Revision of the Electricity BusinessAct and Other Acts for Establishing Resilient and Sustainable Electricity Supply Systems (No. 49, 2020) (hereinafterreferred to as the “2020 Act on Renewable Energy Special Measures”) is expected to have the same tendency. As a result,
new renewable energy power generation facilities placed by operators may decrease in view of investment profitability.
The locations for placing renewable energy power generation facilities are subject to constraints, such as geographicalconditions, site area, surrounding environment including the amounts of sunlight, wind, and water, regional climate,regulations imposed by public law, environmental restrictions, fuel supply, and connectivity with a connecting powercompany. In particular, CSIF has the policy of maintaining the percentage of investment in photovoltaic power generation
facilities and beneficial interests in the trust of photovoltaic power generation facilities at 90% or higher. Locations
appropriate for the placement of new photovoltaic power generation facilities will be limited after the introduction of the20feed-in tariff (FIT) program due to the installation of photovoltaic power generation already in progress at these locations.
The period of determining the procurement price for photovoltaic power generation facilities after the establishment of thefeed-in tariff (FIT) program is being revised. As a result of the revision, the construction of photovoltaic power generation
facilities is becoming more difficult than the point immediately after the introduction of the feed-in tariff (FIT) program,and new facilities installed may decrease in the future.
In addition, the existing certification obtained under the Act on Renewable Energy Special Measures before the revisionceased to be effective when the 2016 revised Act was enforced and deadlines for starting the operation of facilities yet tostart were imposed. Subsequently, additional measures for facilities not in operation have been taken and the expiration ofcertification is introduced by the 2020 Act on Renewable Energy Special Measures, which may cause a decrease in new
renewable energy power generation facilities installed.
Furthermore, conditions for connection with power companies, procurement price, and other buying conditions may
become more disadvantageous due to changes or the abolition of government measures such as the feed-in tariff (FIT)
program, expiration of existing certification, changes in procurement price, or deadlines or strict conditions for starting
facilities not in operation may be imposed, purchasing may be more limited from output curtailment or other rules, or
expenses for operation and maintenance of renewable energy power generation facilities may increase, which may cause aslowdown in the installation of renewable energy power generation facilities conforming to CSIF’s investment policy.
Consequently, renewable energy power generation facilities available for purchase by CSIF in the future may decrease ordisappear.
d. Risks associated with renewable energy power generation facilities other than photovoltaic power generation facilities
While CSIF has a policy of investing primarily in renewable energy power generation facilities and beneficial interests intrust of renewable energy power generation facilities, and maintaining the percentage of investment in photovoltaic power
generators and other facilities, and beneficial interests in trust of photovoltaic power generation facilities at 90% or higher,
it purchases renewable energy power generation facilities other than photovoltaic power generation facilities in somecases. Renewable energy power generation facilities other than photovoltaic power generation facilities eligible for the
feed-in tariff (FIT) program subsidy include power generation facilities that use wind power, hydropower, geothermal
power, and biomass energy as their energy sources.
Many of the risks associated with photovoltaic power generators and other facilities are described in this section (1) Risk
factors correspond to renewable energy power generation facilities other than photovoltaic power generators and otherfacilities. Risks unique to renewable energy power generation facilities other than photovoltaic power generators and otherfacilities include the following. First, there is a risk of not being able to buy and sell for a price, time, and other conditions
desired by CSIF due to liquidity even lower than photovoltaic power generation facilities largely as a result of the generally
small number of power generation companies, restrictions on locations, and immaturity of the trading market. There is also
a risk of being unable to select operators or O&M companies with adequate skills and expertise and conditions desired by
CSIF due to a limited number of management and maintenance companies for such types of renewable energy power
generation facilities as a result of more technical difficulty than photovoltaic power generation facilities.
Moreover, wind power generation is exposed to risks such as fluctuations in output caused by wind conditions, damage towindmills caused by windstorms, lightning, or other weather conditions, and disputes with local residents caused by noisefrom windmills, electromagnetic interference, and change in scenery, etc. Hydropower generation is exposed to risks suchas fluctuations in output due to changes in volumes of water. Geothermal power generation is exposed to risks such as theinability to ensure the possession of rights to use hot springs during the procurement period due to underdeveloped legal
infrastructure and exhaustion of hot springs or a decrease in the amount of water flow caused by continuous use or use of
hot springs in neighboring land. Biomass power generation is exposed to risks such as the inability to stably procure
adequate fuel, foreign exchange fluctuations when using imported biomass fuel, and unlimited output curtailment withoutcompensation. Therefore, investment in renewable energy power generation facilities other than photovoltaic power
generation facilities may be exposed to risks different from those in the case of possessing photovoltaic power generation
facilities.
(omitted)
5. Risks associated with rights and legal systems in the feed-in tariff (FIT) program(i) Risk that the feed-in tariff (FIT) program is revised or abolished
While CSIF invests primarily in photovoltaic power generation facilities eligible for the feed-in tariff (FIT) programsubsidy, the current program may be revised or abolished due to changes in the situation surrounding the program, which
may result in the risk of no longer being able to receive stable and continuous electricity sale income under the same
conditions or the risk of incurring an increase in expenses for operation and maintenance of photovoltaic power generation
facilities to comply with new rules.
The Act of Partial Revision of the Electricity Business Act and Other Acts for Establishing Resilient and Sustainable
Electricity Supply Systems (No. 49, 2020) was established on June 25, 2020, to revise the Act on Renewal Energy Special
Measures, and the 2020 revised Act on Renewal Energy Special Measures will take effect on April 1, 2022. Under the2020 revised Act on Renewal Energy Special Measures, a system of trading power sources, which use renewable energy
sources that can be expected to grow into competitive power sources, in the market like other power sources will be
introduced in lieu of the conventional FIT program. The Feed-in Premium (FIP) program, which will add a certain
21

premium to the market price, will also be established. An overview of the FIP program is found in section b. Investment
Environment, (i) Progress of Asset Operation in the Period under Review, B. Business Overview, (1) Trends in Key
Management Indicators, 1, Overview of the Investment Corporation, I. Overview of the Fund, Part 1. Fund Information in
the reference securities report. However, the assets held by CSIF have already started selling electricity under the FIT
program and, judging from discussions in the Subcommittee for Renewable Energy as Main Power Source and answers in
Diet deliberations, these facilities are likely to remain eligible for the current FIT program and are unlikely to be shifted to
the FIP program. Therefore, CSIF considers that even if the 2020 Act on Renewable Energy Special Measures is enforced,
the impact on the method of selling electricity and purchase price of the photovoltaic power plants held by CSIF will likely
be small. Meanwhile, the integration into the market that includes the establishment of the FIP program may result in adecrease in new photovoltaic power generation facilities to be constructed thereafter or construction of facilities that are
inappropriate for investment, and CSIF may become unable to acquire desirable photovoltaic power generation facilities.
(ii) Risks associated with changes in procurement price or period
Under the feed-in tariff (FIT) program, the purchase (procurement) price or purchase (procurement) period that applies on thefirst day of operation of each photovoltaic power generation facility does not, in principle, change for the facility. However,the Act on Renewable Energy Special Measures allows the Minister of Economy, Trade and Industry to modify the
procurement price and period if necessary when consumer price or other economic conditions dramatically changed or are
likely to change (paragraph 8, Article 3 of the Act on Renewable Energy Special Measures). The procurement price andperiod applicable to an individual power generation facility may be changed due to changes in the treatment of procurement
prices at the time of application after modification of the feed-in tariff (FIT) operation even without revision of procurement
prices and periods. The amount of proceeds received by power generation companies in the future may decrease due towithholding of expenses for removing power generation facilities or other expenses even without changes in the procurement
price itself. If this change is enforced, electricity sale income may decrease, adversely affecting the income of CSIF, reducing
the value of power generation facilities, and causing a loss to investors or creditors of CSIF. If the procurement price or the
maximum bidding price is set low or the procurement period is reduced in the future, new photovoltaic power generation
facilities to be constructed thereafter will decrease or facilities constructed will not be appropriate for investment, and CSIF
may become unable to acquire desirable photovoltaic power generation facilities.
(iii) Risks associated with the cancellation or expiration of certification based on the Act on Renewal Energy Special
MeasuresApproval for a renewable energy power generation business plan based on the Act on Renewable Energy Special Measures isrequired to be granted the feed-in tariff (FIT) program subsidy. The Act on Renewable Energy Special Measures allows the
Minister of Economy, Trade and Industry to terminate approval when an approved renewable energy power generation
business plan no longer conforms to the Act on Renewable Energy Special Measures and the Ordinance for Enforcement of
the Act on Renewable Energy Special Measures or a certified business operator violated an improvement order issued by the
Minister of Economy, Trade and Industry. If certification is terminated, the operator is no longer able to sell electricity
through the feed-in tariff (FIT) program under the Act on Renewable Energy Special Measures using the photovoltaic power
generation facility specified in the renewable energy power generation business plan at issue. If certification is obtained
again, the procurement price (likely below the initial price) and period at time of the new certification apply. In this case,electricity sale income may decrease significantly, adversely affecting the income of CSIF, reducing the value of power
generation facilities, and causing a loss to unitholders or creditors of CSIF.
Under the 2020 Act on Renewable Energy Special Measures, a new rule for the expiration of certification will be introduced
to release the system capacity reserved for facilities not in operation for a long time. However, the assets held by CSIF
already started selling electricity under the FIT program and even when the 2020 Act on Renewal Energy Special Measures
goes into effect and expiration of certification is introduced, certification of the photovoltaic power plants owned by CSIF
will not be nullified as a result. Meanwhile, the establishment of the expiration of certification may cause a decrease inphotovoltaic power generation facilities appropriate for accreditation by CSIF, making it unable to acquire desirable
photovoltaic power generation facilities.
(omitted)
G. Risks associated with power generation business
CSIF has the policy of investing primarily in renewable energy power generation facilities and beneficial interests in trust of
renewable energy power generation facilities and maintaining the percentage of investment in photovoltaic power generation
facilities and beneficial interests in trust of photovoltaic power generation facilities at 90% or higher. The power generation
business operated using these assets that are exposed to to the following risks. The same applies to the case of investing inother assets backed by the assets concerned. The lease income from the photovoltaic power generation facilities of CSIF or
the Trustee is based on the electricity sale income of a power generation business operator, who is the lessee of the facilities.
The following risks may cause a decrease in the value of working assets, liability for damages, and a fall in the electricity sale
income of the power generation operator being the lessee of the facilities, reducing the income of CSIF and causing a loss to
its unitholders or creditors.
(omitted)(vi) Risks associated with regulations applicable to electricity generation business operators under the Electricity Business Act
Electricity generation business operators operating and maintaining power generation facilities of more than a certain sizemust submit reports on their electricity generation business according to the Electricity Business Act. Electricity generation22

business operators (refers to Electricity Generation Utilities defined in item (xv), paragraph (1), Article 2 of the Electricity
Business Act, which are hereinafter referred to as “Reporting Electricity Generation Utilities” in this section (vi)) must
prepare a supply plan and submit it to the Minister of Economy, Trade and Industry through the Organization for Crossregional Coordination of Transmission Operators, JAPAN (“OCCTO”) every business year. The Minister of Economy, Tradeand Industry may advise on Reporting Electricity Generation Utilities to revise their supply plan or order them to supply
electricity or take other necessary measures to ensure the stable supply of electricity through cross-regional operation.
Reporting Electricity Generation Utilities are subject to administrative actions pursuant to the Electricity Business Act, suchas business improvement orders issued by the Minister of Economy, Trade and Industry. If this authority is exercised, theelectricity sale income of a lessee being a Reporting Electricity Generation Utility may decrease, causing a fall in the incomeof CSIF and a loss to its unitholders or creditors.
A Reporting Electricity Generation Utility is required to be a member of the OCCTO and to follow the instructions of the
OCCTO when the supply-demand balance deteriorates. If this authority is exercised, the electricity sale income of a lessee
being a Reporting Electricity Generation Utility may decrease, causing a fall in the income of CSIF and a loss to its
unitholders or creditors.
In addition, as of the date of this document, discussions are under way to introduce a system (power producer-side basecharges) of having electricity generation companies that are electricity system users pay a part of fixed expenses for facilities
among the expenses for power transmission and distribution, which are currently collected only from retail power companies
through wheeling charges. Together with the discussions on the introduction of power producer-side base charges, themaximum amount of expenses for system enhancement paid by general power transmission and distribution business
operators (general payment) when power producers connect power systems was revised, and measures to reduce the initialexpenses paid by producers of solar power and wind power, etc. were taken. Whether to compensate for an increase inpayment due to the introduction of power producer-side base charges and details of the compensation are still underdiscussion. If no adjustment measures to adequately make up for the expenses for the power producer-side base charges, theelectricity sale income of a lessee as a power producer may decrease, causing a fall in the income of CSIF and a loss to its
unitholders.
(vii) Risks associated with establishment and revision of other laws and regulations
Expenses for the maintenance of photovoltaic power generation facilities may increase due to establishment or revision of theElectricity Business Act or other laws and regulations related to the maintenance or management of photovoltaic power
generation facilities. A new obligation may be imposed on CSIF, an operator, or a lessee due to establishment or revision oflaws and regulations related to the electricity business.
Moreover, new laws and regulations for environmental protection enacted and enforced in the future may impose new
obligations concerning the possession, disposition or disposal of photovoltaic power generation facilities.
The 2020 Revised Act on Renewal Energy Special Measures includes a new system for securing reserves for expenses for the
disposal of photovoltaic power generation facilities. This requires approved power producers supplying electricity generatedusing power generation facilities in the categories subject to reserves specified by the Minister of Economy, Trade andIndustry to, in principle, reserve funds to be used for demolishing these facilities with the OCCTO (external reserves) as“reserve funds for demolition, etc.” Specifics such as the details of the categories subject to reserves, amounts of reserve
funds, periods, and frequency are not provided for in the 2020 Revised Act on Renewal Energy Special Measures and will be
specified by the Minister of Economy, Trade and Industry and prescribed in a METI ordinance. The interim report dated
December 10, 2019, released by the Working Group on Securing Costs for Decommissioning and Disposal of Renewable
Power Generation Facilities proposes a system design for reserving funds by deducting amounts calculated from disposal
expenses assumed in the calculation of procurement prices from the electricity sale income of all photovoltaic power
generation businesses of 10kW or larger approved based on the Act on Renewal Energy Special Measures for 10 years fromthe completion of the procurement period. The system is likely to be developed in line with this proposal from now on.
Meanwhile, the proposal states that a power producer may internally reserve funds through its own method as an exception if
its power generation business plan indicates the amount and method of reserves and other details specified in the METI
ordinance (a requirement for meeting certain conditions is expected to be included) and is approved by the Minister of
Economy, Trade and Industry. Regarding listed infrastructure funds, there was an argument at the eighth meeting of theWorking Group on Securing Costs for Decommissioning and Disposal of Renewable Power Generation Facilities held on
October 19, 2020, that internal savings could be permitted if the overall contract signed between a listed infrastructure fundand an approved power producer included provisions indicating financial and organizational integrity, such as a fund flow
demonstrating the same electricity sale income used as the capital for both parties’ businesses, limitation on the terminationof contracts from lessees, and restrictions on other purposes of use of power generation facilities and land where the facilities
are located as long as the requirements for listing the infrastructure fund are satisfied. After the adoption of this system, theelectricity sale income of lessees being power producers may decrease or expenses incurred by the lessees and CSIF being theowner of photovoltaic power generation facilities may increase, causing a fall in the income of CSIF and a loss to its
unitholders.
(omitted)
G. Risks associated with working assets
CSIF has the policy of investing primarily in renewable energy power generation facilities and beneficial interests in trust of
renewable energy power generation facilities and maintaining the percentage of investment in photovoltaic power generation
facilities and beneficial interests in trust of photovoltaic power generation facilities at 90% or higher. These assets are
exposed to the following risks. The same applies to the case of investing in other assets backed by the assets concerned. The
23

lease income from the photovoltaic power generation facilities of CSIF or the Trustee is based on the electricity sale incomeof a power producer, who is the lessee of the facilities. The following risks may cause a decrease in the value of working
assets, liability for damages, and a fall in the electricity sale income of the power producer being the lessee of the facilities,
causing a fall in the income of CSIF and a loss to its unitholders or creditors.
(i) Risks associated with a defect or malfunction and non-conformity to a contact
Photovoltaic power generation facilities are exposed to the risk of a defect or malfunction and non-conformity to a contact,etc. related to design, material quality, construction, components, materials, rights, etc. and that defect or malfunction and non-conformity, etc. may be discovered after the acquisition of the facilities.
If an EPC company states and guarantees certain standards for the photovoltaic power generation facilities to CSIF, Trustee,or power producer in an EPC contact or it is liable for defects or non-conformity to the contract, or the manufacturer provides
a warranty for solar modules, power conditioners, and scaffolding, etc., CSIF, Trustee, or power producer will seek
compensation for any damages caused by the EPC company’s failure to abide by the statements or guarantee, a defect, or non-conformity to the contract or demand repair, replacement, or guarantee payment according to the product warranty.
However, the applicability and period, etc. of the liability are limited to a certain range and the defect, malfunction, and nonconformity to the contract, etc. concerned may not be subject to the liability.
CSIF may demand the previous owner or previous trust beneficiary for a statement or guarantee concerning certain mattersdepending on the situation and hold it liable for a defect or non-conformity to a contract. However, the CSIF may not be able
to obtain a statement or guarantee or hold the party liable for a defect or non-conformity in some cases. Even if it issuccessful in the effort, the period and amount of the liability are generally limited to a certain range, and the liability may not
be effective due to dissolution or insolvency of the previous owner or previous trust beneficiary. This possibility isparticularly high when the previous owner or previous trust beneficiary is an SPC.
In this case, repair or replacement of photovoltaic power generation facilities may be difficult or impossible or CSIF mustbear unexpected expenses for the repair or replacement of photovoltaic power generation facilities, causing damages to its
unitholders or creditors.
(omitted)(v) Risks associated with damage, loss, and degradation caused to photovoltaic power generation facilities by disasters
A fire, earthquake, liquefaction, tsunami, volcanic eruption, ash fall, tidal wave, strong wind, rainstorm, snowfall, heavy
rainfall, flood, lightning, tornado, landslide, warfare, armed attack, riot, disturbance, or terrorist attack, etc. (hereinaftercollectively referred to as “disasters”), an illegal act of a third party such as a theft and destruction, or damage caused by aplant or animal may cause facilities or land for photovoltaic power generation to be lost, degraded, or damaged and theirvalue to be reduced. In particular, many photovoltaic power generation facilities are unmanned and have sections not easily
visible to people. Even with security systems using surveillance cameras and sensors in place, they are exposed to the risk ofa third party’s illegal acts, such as theft and destruction and damage caused by plants and animals. If facilities or land forphotovoltaic power generation, power transmission facilities of CSIF, power producer, or connecting power company, orother third-party facility related to power transmission is lost, degraded, or damaged, the power generation capacity of thephotovoltaic (power) generation facilities has decreased, or indirect damage such as deterioration of the surrounding
environment has occurred due to disasters, illegal acts of a third party, or damage caused by plants and animals, thephotovoltaic power generation facilities may be forced to suspend operation until the disaster concerned subsides or for theperiod required for the repair of the section lost, degraded, or damaged, the electricity sale income of the power producer
being the lessee decreases, causing a fall or loss of lease income of CSIF or Trustee, or the value or profit of the facilities orland for photovoltaic power generation declines, resulting in a loss caused to the unitholders or creditors of CSIF.
In addition, if disasters or epidemics have caused an interruption or delay in maintenance, inspections, repair, or restoration,etc. of power transmission facilities of the power producer or connecting power company or a third-party facilities related to
power transmission and the capacity of the photovoltaic power generation facilities has decreased continuously for a certain
period of time or their operation must be suspended, the electricity sale income of the power producer being the lessee may
decrease and the lease income of CSIF or Trustee may be reduced or lost or the value of the facilities or land for photovoltaic
power generation may decline, causing a loss to the unitholders or creditors of CSIF.
CSIF determines the types of damages and maximum amount covered by insurance by comprehensively examining thepossibility and extent of foreseeable damages, the level of insurance premiums, and other factors, and not all damages arecovered by insurance. If insurance is not established for facilities or land for photovoltaic power generation due to individual
circumstances, damages exceeding the amount covered by insurance are incurred, disasters not covered by insurance or
damages caused by illegal acts of a third-party or plants and animals are sustained, insurance benefits based on an insurance
policy are unpaid, reduced, or delayed by the insurance company for some reason, or even if the insurance is paid, thefacilities or land for photovoltaic power generation, power transmission facilities, or other facilities cannot be restored to thestate before the damages were caused by a third party’s illegal acts or plants and animals due to administrative regulations orother reasons, a fall in the income of CSIF, causing a loss to the unitholders or creditors. Even when insurance benefits arepaid, renewal of a large part of the facilities may be considered new facilities, to which the initial procurement price andperiod may not apply.
(omitted)
H. Risks associated with beneficial interests in trust

24

CSIF invests primarily in renewable energy power generation facilities and beneficial interests in trust for trusting renewableenergy power generation facilities. The trustee of the trust may be the owner (or surface right owner or lessee) of therenewable energy power generation facilities when acquiring beneficial interests in trust for trusting renewable energy power
generation facilities. CSIF, being the trust beneficiary gives instructions to the trustee of the trust, which manages, operates,and disposes of the renewable energy power generation facilities according to its operation policy for CSIF being the trust
beneficiary. Because economic benefits and losses based on renewable energy power generation facilities ultimately belong
to the trust beneficiary, CSIF owning the beneficial interests in trust is exposed to risks virtually equivalent to those in thecase in which the working assets are the renewable energy power generation facilities themselves through the Trustee.
Meanwhile, there are differences for CSIF in tax treatment and the methods of securing and providing assets between the caseof directly owning renewable energy power generation facilities and the case of owning beneficial interests in trust. Whenacquiring beneficial interests in trust, it is exposed to the following risks unique to beneficial interests in trust.
(The rest is omitted.)25

2. Financial Statement(1) Balance Sheet(Unit : thousand yen)
6th Period(June 30, 2020)
AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets
Fixed Assets
Property and equipment
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment ,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property and equipment
Intangible assets
Leasehold rights
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Long-term bank deposit
Guarantee deposits
Total investment and other assets
Total fixed assets
Deferred Assets
Investment corporation bond issuance cost
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating Accounts payable
Accounts payable – operating
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Consumption tax payable
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bondLong-term loan payable
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus
Unappropriated retained earnings(Accumulated deficit)
26

7th Period(December 31, 2020)

2,627,638
477,976
109,917
1,799
3,217,332

2,828,532
362,206
155,628
26,2412,130
3,374,740

1,041,843(85,025)
956,818*2 42,736,685(3,880,573)
38,856,111
592,249(55,331)536,917
4,469,653
10,56044,830,061

1,043,042(106,526)
936,515*2 42,426,996(4,716,860)
37,710,136
590,418(66,933)
523,485
4,485,144
17,01733,071(341)
32,729776,471(8,017)
768,453
3,204
(33)
3,171
116,748
44,593,402

753,1391,960
755,099753,139
1,566
754,706

284,425
15
37,790322,230
45,907,391

269,287
13
15,60037,790322,690
45,670,799

7,656
7,656
49,132,379

6,776
6,776
49,052,315

29,9581,534,806
78,655
155,410922
203,692301
2,003,746

67,9106,517,867
109,145
102,519879
33,9483,085
6,835,355

1,100,000
24,297,106
25,397,106
27,400,853

1,100,000
19,524,374
20,624,374
27,459,730

22,050,175(1,010,472)
21,039,702

22,050,175(1,174,155)
20,876,019

691,823

716,565

Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

691,823
21,731,525*1 21,731,525
49,132,379

27

716,565
21,592,585*1 21,592,585
49,052,315

(2) Statement of Income(Unit: thousand yen)
6th period(from January 1, 2020
to June 30, 2020)
Operating revenues
Rental revenues of renewable energy power generation
facilities, etc.
Total operating revenues
Operating expenses
Rental expenses of renewable energy power generation
facilities, etc.
Asset management fee
Administrative service fees
Director’s compensation
Taxes and duties
Other operating expenses
Total operating expenses
Operating income or loss
Non-operating incomesInterest income
Insurance income
Interest on refund
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Interest on investment corporation bondAmortization of Investment corporation bond issuance
cost
Borrowing-related expenses
Loss on retirement of non-current assets
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income tax - deferred
Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)

28

7th period(from July 1, 2020
to December 31, 2020)*1 2,331,291*1 2,413,625

2,331,291

2,413,625*1 1,362,007*1 1,409,487

59,407
19,4022,400
101
47,603
1,490,922
840,369

61,062
18,9942,400
436
62,912
1,555,292
858,332

13
400

14
1,219
-

*2 -

*2 35,501

413

36,735112,576
3,894

111,324
3,937

879

879

30,701
148,053
692,729
692,729924(2)921
691,80716
691,823

56,792
4,787
177,721717,346717,346881
2
883
716,462103
716,565

(3) Statements of Changes in Unitholders’ Equity
6th Fiscal Period (From January 1, 2020 to June 30, 2020)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital

Balance as ofJanuary 1, 2020

SurplusTotal
unitholders’equityTotal net
assetsUnitholders’capitalDeduction fromunitholders’capitalUnitholders’capital(net)

Capitalsurplus orloss

22,050,175(700,678)

21,349,496

534,065534,065-(309,794)(309,794)--(309,794)(309,794)---(534,048)(534,048)(534,048)(534,048)---

691,807691,807691,807691,807-(309,794)(309,794)

157,758

157,758(152,035)(152,035)*1 22,050,175(1,010,472)

21,039,702

691,823

691,823

21,731,525 21,731,525

Total
surplus21,883,561 21,883,561

Changes of items
during the period
Distribution inexcess of earnings
Dividend of
surplus
Net Income
Total changes of
items during theperiodBalance as of June30, 2020

7th Fiscal Period (From July 1, 2020 to December 31, 2020)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital

Balance as of July 1,
2020

SurplusTotal
unitholders’equityTotal net
assetsUnitholders’capitalDeduction fromunitholders’capitalUnitholders’capital(net)

Capitalsurplus orloss

22,050,175(1,010,472)

21,039,702

691,823

691,823-(163,682)(163,682)--(163,682)(163,682)---(691,720)(691,720)(691,720)(691,720)---

716,462

716,462

716,462

716,462-(163,682)(163,682)

24,742

24,742(138,940)(138,940)*1 22,050,175(1,174,155)

20,876,019

716,565

716,565

21,592,585 21,592,585

Total
surplus21,731,525 21,731,525

Changes of items
during the period
Distribution inexcess of earnings
Dividend of
surplus
Net Income
Total changes of
items during theperiodBalance as ofDecember 31, 202029

(4) Statements of Cash Distribution
Fiscal Period under Review(From January 1, 2020
to June 30, 2020)
Unit: Yen
I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained
earnings(Distributions in excess of retained
earnings)
IV. Retained earnings (deficit) carried forward
Calculation method for cash distributions(Note)

Fiscal Period under Review(From July 1, 2020
to December 31, 2020)
Unit: Yen

691,823,858

716,565,873

163,682,520

138,945,190

855,403,000(3,700)691,720,480(2,992)
163,682,520

855,403,000(3,700)716,457,810(3,099)138,945,190

(708)

(601)

103,378
108,063
In a c cor danc e wi th Ar tic les 47,
In a c cor danc e wi th Ar tic les 47,
Paragraph 1 of Canadian Solar Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amount of Articles of Incorporation, the amount ofcash distributions shall be the amount of cash distributions shall be the amount of
profit in excess of an amount equivalent profit in excess of an amount equivalent
to 90% of distributable profits, as to 90% of distributable profits, as
stipulated in Article 67-15 of the Act on stipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation. Special Measures Concerning Taxation.
Based on this policy, CSIF decided to Based on this policy, CSIF decided tomake distributions of ¥691,720,480 make distributions of ¥716,457,810
which is the entire amount equivalent to which is the entire amount equivalent tothe unappropriated retained earnings for the unappropriated retained earnings fort h e f i s c a l pe r i od un de r r e v i e w o f t h e f i s c a l pe r i od u n de r r e v i e w o f¥691,823,858 excluding fractions of the ¥716,565,873 excluding fractions of the
distribution per unit that are less than ¥1. distribution per unit that are less than ¥1.
CSIF distributes cash in excess of
CSIF distributes cash in excess ofretained earnings every fiscal period retained earnings every fiscal period
based on the cash distribution policy based on the cash distribution policy
prescribed in Article 47, Paragraph 2 of prescribed in Article 47, Paragraph 2 of
CSIF’s Articles of Incorporation. Based CSIF’s Articles of Incorporation. Basedon this policy, CSIF decided to make on this policy, CSIF decided to makecash distributions in excess of earnings cash distributions in excess of earnings(return of capital c ategorized a s a (return of capital c ategorized a s a
distribution of the reduction in capital distribution of the reduction in capitalfor Japanese tax purposes) in the amount for Japanese tax purposes) in the amountof ¥163,682,520 which is equivalent to of ¥138,945,190 which is equivalent to17.9% of the amount of depreciation 15.2% of the amount of depreciation
expenses recorded for the fiscal period expenses recorded for the fiscal period
under review of ¥912,259,006.
under review of ¥914,309,028.
Accordingly, the distribution per unit
Accordingly, the distribution per unitis ¥3,700.
is ¥3,700.

Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in
CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation
facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize suchpolicy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewableenergy power generation facilities and if actual NCF calculated based on actual power generation during the applicable30

fiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limitof the amount of cash distributions for the applicable fiscal period.

.

On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout
ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥855,403,000 which is within
the limitation of 95% of forecast NCF amount for the fiscal period under review of ¥902,632,000 and equivalent to 94.7%of that. Of this, ¥163,682,520 which is the amount less of distributions of profit of ¥691,720,480 is distributions in excess
of retained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥855,403,000 which is equivalent
to 89.0% of forecast NCF amount for the fiscal period under review of ¥960,272,000. Of this, ¥138,945,190 which is theamount less of distributions of profit of ¥716,457,810 is distributions in excess of retained earnings.

31

(5) Statement of Cash Flow(unit: thousand yen)
6th period(From January 1, 2020
to June 30, 2020)
Cash flows from operating activities
Income (Loss) before income taxes
Depreciation cost
Investment corporation bond issuance expenses
Interest income
Interest expenses
Other non-operating income
Loss on retirement of non-current assets
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in consumption taxes payable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable - other
Increase (Decrease) in accrued expenses
Other, net
Sub-totalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Deposit into fixed deposits
Purchases of property and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
periodCash and cash equivalents at the end of the fiscal period

7th period(From July 1, 2020
to December 31, 2020)

692,729912,259879(13)
116,471(209,049)
329,815
195,374
47,606
31,694(3,030)11,18454,026(2,200)2,177,748
13(117,120)(862)
2,059,778

717,346914,309879(14)
115,261(35,501)
4,787
115,770(26,241)(169,743)(45,710)
15,137
37,95130,490(53,510)2,453
1,623,665
14(114,642)(925)
1,508,112*1 (21,259)*1 (646,543)(21,259)(654,343)(1,041,093)(534,048)(309,794)(1,884,936)
153,5811,000,000(789,671)(691,720)(163,682)(645,074)
208,694

2,466,256

2,619,838*2 2,619,838*2 2,828,532(7,800)32

(6) NOTES ON GOING CONCERN PREMISE
Not applicable.
(7) [SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]
1.Method of depreciation andamortization of non-current assets(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major property
and equipment are as shown below:
Structures............................................... 22 - 25 years
Machinery and equipment..................... 22 - 25 years
Tools, furniture and fixtures.................. 22 - 25 years
Structures in trust .................................. 25 years
Machinery and equipment in trust......... 25 years
Tools, furniture and fixtures in trust...... 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown below:
Software................................................ 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.

2. Method of amortization of deferredassets3.Standards for revenue and expense
recognition(1) Investment corporation bond issuance expenses
Amortized by the straight-line method over the life of the bonds.
Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax, among
other taxes, on the infrastructure assets held, of the tax amount assessed and determined,
the amount corresponding to the calculation period is accounted as rental expenses. In
addition, reimbursement such as fixed assets tax, which is paid to the seller and otherpersons on the acquisition of infrastructure assets and other assets (“the amountequivalent to the fixed assets taxes and other taxes”) is not recognized as rental expenses
but included in the acquisition cost of the concerned infrastructure assets and otherassets. In the fiscal period under review, the amount equivalent to the fixed assets tax
and other taxes included in the acquisition cost of infrastructure assets and other assets is
527 thousand yen.

4.Scope of funds in statement of cash
flows

Funds (cash and cash equivalents) in statement of cash flows consist of cash on hand,demand deposits and short-term investments with a maturity of three months or less atthe date of acquisition that can readily be converted into cash and that are subject toinsignificant risks of changes in value.

5.Method of hedge accounting(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets the requirements for
special treatment.
(2) Hedging instruments and hedged items:
・Hedging instruments……Interest rate swap transaction
・Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the CSIF’s Articles
of Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, and thus theevaluation of effectiveness is omitted.

33

6.Other significant matters serving as(1) Accounting treatment with regard to trust beneficiary interest in real estate

the basis for preparation of financial

With regards to trust beneficial interest in equipment of renewable energy powerstatements

plants, all assets and liabilities within entrusted assets as well as all revenue andexpense items which occur to entrusted assets are recorded as the respective accounttitles on the balance sheet and statements of income. The following important accounttitles among the entrusted assets which are recorded as the respective account titles are
separately indicated on the balance sheet:
Structures in trust, Machinery and equipment in trust,Tools, furniture and fixtures intrust, Land in trust.
(2) Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from the correspondingtransaction amount.

34

(8) Notes regarding financial statements[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
As ofJune 30, 2020

As ofDecember 31, 2020
50,00050,000*2. JPY amount of a decrease in acquisition price for machine and equipment of S-13 CS Mashiki-machi PV Power Plant(Unit: thousand yen)
As ofJune 30, 2020

As ofDecember 31, 2020-

332,606[NOTES TO STATEMENT OF INCOME]*1 Breakdown of profits and losses from the rental business of renewable energy power generation facilities, etc.
(Unit: thousand yen)
From January 1, 2020 toJune 30, 2020

From July 1, 2020 to
December 31, 2020

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation
facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.

1,646,317

1,698,289

684,879

715,32594

112,331,291

2,413,625

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation
facilities, etc.
(Management entrustment expenses)

159,491

191,46398

8,585(Taxes and duties)

223,768

223,744(Utilities expenses)--(Insurance expenses)

22,112

24,676(Depreciation expenses)

911,865

913,915(Land rent)

44,67046,502(Trust fees)-

600(Other rental expenses)--

1,362,007

1,409,487

969,284

1,004,138(Repair and maintenance costs)

Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.
C. Profits and losses from the rental business of renewable energy
power generation facilities, etc. (A-B)

35

*2 JPY Amount of reversal of accumulated depreciation corresponding to a decrease in acquisition price for S-13 CS Mashikimachi PV Power Plant(Unit: thousand yen)
As ofJune 30, 2020

As ofDecember 31, 2020-

35,478[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding
From January 1, 2020 toJune 30, 2020
Total number of authorized investment
units
Total number of investment units issued
and outstanding

From July 1, 2020 to
December 31, 2020

10,000,000 unit

10,000,000 unit

231,190 unit

231,190 unit

[NOTES TO STATEMENT OF CASH FLOWS]*1 Breakdown of purchases of property and equipment(Unit: thousand yen)
From January 1, 2020 toJune 30, 2020

From July 1, 2020 to
December 31, 2020

Consideration of property and equipment
purchased for the fiscal period ending(21,259)(980,537)-(333,993)(21,259)(646,543)

December 31, 2020
Refund of a part of consideration ofproperty and equipment purchased before
the previous fiscal period
Purchases of property and equipment*2 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From January 1, 2020 toJune 30, 2020
Cash and deposits
Fixed term deposits exceeding 3 months
Cash and cash equivalents

36

From July 1, 2020 to
December 31, 2020

2,627,638

2,828,532(7,800)-2,619,838

2,828,532

[NOTES ON LEASE TRANSACTIONS]
Operating lease (as the lessor)
Future minimum lease payments(Unit: thousand yen)
Fiscal period ended

Fiscal period ended

June 30, 2020

December 31, 2020

Within one year

3,320,471

3,367,129

Longer than one year

50,176,820

49,423,243

Total

53,497,291

52,790,373[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or issuinginvestment units. The basic policy is to build stable and sound financial operations to maintain and increase earnings in
the medium to long term and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets and are
exposed to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted through theappropriate balancing of the loan period and the interest rate type, and diversification of lenders, and the appropriate
management of various types of indexes, especially the general application of the upper limit of the ratio of interestbearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices, values arereasonably calculated. Since certain assumptions are used for the calculation of fair values, they may change if different
assumptions are used.
2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of June 30, 2020, and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

2,627,638

2,627,638-

477,976

477,976-

3,105,615

3,105,615-

1,534,806

1,536,238

1,432(4) Long-term loans payable

24,297,106

24,526,517

229,410(5) Investment corporation bond

1,100,000

1,086,690(13,310)

Total liabilities

26,931,912

27,149,446

217,533(6) Derivative transaction

-

-

-

(2) Operating accounts receivable
Total assets(3) Current portion of long-term loans
payable(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
Liabilities37

(3) Current portion of long-term loans payable (4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the totalsum of the principal and interest treated together with the said interest rate swap as one at the interest rate that is applied
when the similar loan is obtained and that is reasonably estimated.
(5) Investment Corporation Bond
The fair value of investment corporation bonds is determined based on market prices(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.
The table below shows the book value and fair values of financial instruments as of December 31, 2020, and thedifference between them. Financial instruments whose fair values are extremely difficult to estimate are not included in
the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

2,828,532

2,828,532-(2) Operating accounts receivable362,206

362,206-(3) Long-term deposits

15,60015,600-3,206,339

3,206,339-

6,517,867

6,509,162(8,704)(5) Long-term loans payable

19,524,374

19,684,965

160,591(6) Investment corporation bond

1,100,000

1,088,120(11,880)

Total liabilities

27,142,241

27,280,052

140,006(7) Derivative transaction

-

-

-

Total assets(4) Current portion of long-term loans
payable(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
(3) Long-term deposits
These financial instruments are fixed deposits and there is no significant fluctuation between estimated interest rates upon
new deposit and engaged rates of interest and their fair market values approximate their book values. Therefore, the bookvalues are used as the values.
(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to the “Notes on derivative transactions” below), the fair value is measured by discounting the totalsum of the principal and interest treated together with the said interest rate swap as one at the interest rate that is applied
when the similar loan is obtained and that is reasonably estimated.
(6) Investment Corporation Bond
The fair value of investment corporation bonds is determined based on market prices(7) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

38

(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2020)(Unit: thousand yen)
Within one
year(1) Cash and deposits

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

2,627,638

-

-

-

-

-

(2) Operating accounts receivable

477,976

-

-

-

-

-

Total

3,105,615

-

-

-

-

-

Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2020)(Unit: thousand yen)
Within one
year(1) Cash and deposits(2) Operating accounts receivable(3) Long-term deposits
Total

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

2,828,532

-

-

-

-

-

362,206

-

-

-

-

-

-

15,600---3,190,739-

15,600---(Note 3) Scheduled redemption amount of loans payables after the closing date (June 30, 2020)(Unit: thousand yen)
Within one
year(3) Current portion of long-termloans payable

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

1,534,806

-

-

-

-

-

(4) Long-term loans payable-

5,986,293

1,286,533

1,285,273

1,242,792

14,496,212(5) Investment corporation bond

-

-

-

-

1,100,000-

1,534,806

5,986,293

1,286,533

1,285,273

2,342,792

14,496,212

Total

Scheduled redemption amount of loans payables after the closing date (December 31, 2020)(Unit: thousand yen)
Within one
year(4) Current portion of long-termloans payable

Longer than Longer than Longer than Longer than
one year,
two years, three years, four years, Longer than
within two within three within four within five
five years
years
years
years
years

6,517,867

-

-

-

-

-

(5) Long-term loans payable-

1,860,238

1,292,889

1,254,936

1,291,266

13,825,044(6) Investment corporation bond

-

-

-

1,100,000--

6,517,867

1,860,238

1,292,889

2,354,936

1,292,266

13,825,044

Total

39

[NOTES ON SECURITIES]
Prior fiscal period (as of June 30, 2020)
Not applicable.
Current fiscal period (as of December 31, 2020)
Not applicable.
[NOTES ON DERIVATIVE TRANSACTIONS]
1. Those to which hedge accounting is not applied
Prior fiscal period (as of June 30, 2020) and Current fiscal period (as of December 31, 2020)
Not applicable.
Prior fiscal period (as of June 30, 2020)(Unit: thousand yen)
Method ofhedge
accounting
Specialtreatment ofinterest rate
swap

Type of derivativetransactions and othermatters
Interest rate swap
transaction
Fixed
payment/variable
receipt

Major
items
hedgedContract amount and otheramounts
Longer than one
year

Fair value

Method ofcalculation ofsaid market
value(Note)-Longterm
loans

20,811,569

19,568,757

payable(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-term loans payable and thelong-term loans payable to be hedged as one, and thus their fair value is presented together with the fair value of (Note 1) (3) Current portion of longterm loans payable and (4) Long-term loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among
other matters”

Current fiscal period (as of December 31, 2020)(Unit: thousand yen)
Method ofhedge
accounting
Specialtreatment ofinterest rate
swap

Type of derivativetransactions and othermatters
Interest rate swap
transaction
Fixed
payment/variable
receipt

Major
items
hedgedContract amount and otheramounts
Longer than one
year

Fair value

Method ofcalculation ofsaid market
value(Note)-Longterm
loans

20,187,606

18,939,441

payable(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of long-term loans payable and thelong-term loans payable to be hedged as one, and thus their fair value is presented together with the fair value of (Note 1) (4) Current portion of longterm loans payable and (5) Long-term loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among
other matters”[NOTES ON RETIREMENT BENEFITS]
Prior fiscal period (as of June 30, 2020)
Not applicable.
Current fiscal period (as of December 31, 2020)
Not applicable.

40

[NOTES ON TAX EFFECT ACCOUNTING]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
June 30, 2020
Accrued business tax not deductible from taxable

Fiscal period ended
December 31, 202015

13

Total deferred tax assets

15

13

Net amount of deferred tax assets

15

13

income2. Breakdown of each major item that causes a significant difference between the effective statutory tax rate and the rate of
the burden of corporate tax and other taxes after the application of tax effect accounting
Fiscal period ended
June 30, 2020
Effective statutory tax rate

Fiscal period ended
December 31, 2020

31.46%

31.46%(31.41)%(31.42)%

0.09%

0.08%

0.14%

0.12%

(Adjustment)
Dividends paid deductible for tax purpose
OthersRate of burden of corporate tax and other taxes after
the application of tax effect accounting[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Prior fiscal period (as of June 30, 2020)
Not applicable.
Current fiscal period (as of December 31, 2020)
Not applicable.
[NOTES ON RELATED PARTY TRANSACTIONS]
Prior fiscal period (from January 1, 2020 to June 30, 2020)
Not applicable.
Current fiscal period (from July 1, 2020 to December 31, 2020)
Not applicable.
[NOTES ON ASSET RETIREMENT OBLIGATIONS]
Prior fiscal period (from January 1, 2020 to June 30, 2020)
Not applicable.
Current fiscal period (from July 1, 2020 to December 31, 2020)
Not applicable.

41

[NOTES ON INVESTMENT AND RENTAL PROPERTY]CSIF has renewable energy power generation facilities, etc. The book value, change during the period and fair value at the endof the period are as shown below.
(Unit: thousand yen)
Fiscal period ended
June 30, 2020

Fiscal period ended
December 31, 2020

Book value (Note 2)
Beginning balance
Change during the period(Note 3)Ending balance
Fair value at the end of the period(Note 4)

46,473,806

45,572,640(901,166)(243,115)

45,572,640

45,329,524

49,588,000

48,890,000(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus with respect to thebook value and the fair value, the amount of the renewable energy power generation facilities and real estate are stated together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended June 30, 2020 primarily consisted of the increase due to capital expenditure for one photovoltaic power
generation facility (10,699 thousand yen), and the decrease due to depreciation expenses (911,865 thousand yen). And the change during the period
ended December 31, 2020 primarily consisted of the increase due to acquisition of two photovoltaic power generation facilities (929,496 thousandyen), and the decrease due to depreciation expenses (913,915 thousand yen).
(Note 4) The fair value is the total sum of the median amount that we calculated according to Article 41, paragraph 1 of the CSIF's Articles of Incorporationon the basis of the appraised value in the range stated in the valuation report with the date of the value opinion on June 30, 2020 and December 31,
2020, which was obtained from PricewaterhouseCoopers Sustainability LLC (for S-01 to S-18). And, the fair value is the total sum of the medianamount on the basis of the appraised value stated in the valuation report with the date of the value opinion on June 30, 2020 and December 31,
2020, which was obtained from Ernst & Young Transaction Advisory Services Co., Ltd. or Ernst & Young Strategy and Consulting Co., Ltd. (for S-19 to S-23). Please note that E&Y Transaction Advisory Services Co., Ltd. and Ernst & Young Advisory and Consulting Co., Ltd. have been
integrated and those were incorporated as E&Y Strategy and Consulting Co., Ltd. as of October 1, 2020.

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended June 30,
2020 (the 6th period) and the fiscal period ended December 31, 2020 (the 7th period) are as stated in the “Notes to statement ofincome” above.
[NOTES ON SEGMENT INFORMATION]
1.Segment information
Since CSIF has a single segment of the rental business of infrastructure assets, the segment information is omitted.
2.Related Information
Prior fiscal period (from January 1, 2020 to June 30, 2020)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds
90% of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of theoperating revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amount ofproperty and equipment on the balance sheet.

42

(3) Information on major customers(unit: thousand yen)
Name of customer

Total net revenue

Tida Power 01 G.K.

Name of related segment

2,331,196

Renewable energy power generation
facilities, etc. rental businessCurrent fiscal period (from July 1, 2020 to December 31, 2020)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers exceeds
90% of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of theoperating revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of the amount ofproperty and equipment on the balance sheet.
(3) Information on major customers(unit: thousand yen)
Name of customer

Total net revenue

Tida Power 01 G.K.

Name of related segment

2,395,335

CS Hokkaido Ishikari G.K.

13,862

CS Miyagi Kejonuma G.K.

4,416

Renewable energy power generation
facilities, etc. rental business
Renewable energy power generation
facilities, etc. rental business
Renewable energy power generation
facilities, etc. rental business[NOTES ON PER UNIT INFORMATION]
Prior fiscal period
From January 1, 2020
June 30, 2020

Current fiscal period
From July 1, 2020
December 31, 2020

Net assets per unit

93,998 yen

93,397 yen

Net income (Net loss) per unit

2,992 yen

3,099 yen

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units during the period. In theprevious fiscal period, a loss was posted and there were no dilutive investment units, and thus diluted loss per unit is not stated. With respect todiluted profit per unit for the period under review, there are no dilutive investment units, and thus the statement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.

Prior fiscal period
From January 1, 2020
June 30, 2020
Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)
Net income (Net loss) attributable to Common unit
holders (Thousand yen)
Average number of investment units during the period(Units)43

Current fiscal period
From July 1, 2020
December 31, 2020

691,807

716,462--

691,807

716,462

231,190

231,190

[NOTES ON FACTS ARISING AFTER THE SETTLEMENT OF ACCOUNTS](ⅰ) Issuance of Investment Corporation Bonds (Green Bonds)
CSIF issued investment corporation bonds (“Green Bonds”) based on the shelf registration for its issuance ofinvestment corporation bonds filed to Kanto Local Finance Bureau as of January 26, 2021.
① NameCanadian Solar Infrastructure Investment Corporation / The 1st
Unsecured Bond (Green Bonds)② Total issue amount

3,800 million yen③ Form of the bond certificate

Subject to the provisions of the Act on Book-Entry Transfer ofCompany Bonds, Shares, etc. bond certificates will not be issued.

④ Issue price

100 yen per par value of 100 yen for each bond

⑤ Redemption price

100 yen per par value of 100 yen for each bond

⑥ Interest rate

0.80% per annum⑦ Denomination of each bond

100 million yen⑧ Offering method

Public offering⑨ Offering period

January 20, 2021

⑩ Payment date

January 26, 2021

⑪ Collateral / Guarantee

No collateral or guarantee is provided for the Green Bonds.
None of CSIF’s assets are secured for the Green Bonds.

⑫ Redemption method anddate

The total amount of the Green Bonds will be redeemed on January
26, 2026 (5-year bond) Early redemption is possible any time after thepayment date,except for the case separately determined by the depositary.

⑬ Interest payment date

January 26 and July 26 of every year (When an interest paymentdate falls
on a bank holiday it will be moved to the preceding business day. Initialinterest payment date will be July 26, 2021)⑭ Credit rating

A (Japan Credit Rating Agency, Ltd.)⑮ Special financial covenant

Collateral provision restriction clause is added.

⑯ DepositaryJapan Securities Depositary Center, Inc.

⑰ Fiscal agent, issuing agent

Mizuho Bank, Ltd.

and payment agent⑱ Underwriter for private

Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc.

placement(ⅱ) Issuance of New Investment Units and Secondary Offering of Investment Units
CSIF announced that, at a board of directors’ meeting held on February 17, 2021, it resolved to issue new investment units of
CSIF (“Investment Units”) and conduct a secondary offering as follows.
Issuance of new investment units through public offering(1)

Number of investment units to be

151,500 units

offeredCSIF expects to offer 96,960 units for the Japanese Public Offering andSpecific purpose of use and scheduled

All of the net proceeds from the Japanese Public Offering and International

outlay period of proceeds

Offering shall be used for a part of the fund for the acquisition of specified

54,540 units for the International Offering,(2)

assets scheduled to be acquired by CSIF as announced in the “NoticeConcerning Domestic Project Acquisitions and Leasing” (“AnticipatedAcquired Assets”) and for a part of the prepayment of the existing debt.

Secondary offering of investment units through Over-Allotment(1)

Number of investment units to be

7,575 units

offered in the secondary offering

A Japanese Underwriter of the Japanese Public Offering, will make asecondary offering in Japan up to 7,575 units of the Investment Units
borrowed from Canadian Solar Projects K.K. ., taking into account market
demand and other conditions for the Japanese Public Offering.

44

(2)

Specific purpose of use and

The net proceeds from the issuance of new investment units through thescheduled outlay period of proceeds

Third-Party Allotment shall be used for partial payment for the futureacquisition of specified assets or partial repayment of borrowings.

(ⅲ）Borrowings
Canadian Solar Infrastructure Fund, Inc. (“CSIF”) hereby announces its decision to borrow funds ( total borrowings of 19,300
million yen, the “Borrowings”).
To fund a part of the anticipated acquisition of assets and other related costs as separately released in the “Notice Concerning
Domestic Project Acquisitions and Leasing”
2. Details of the Borrowings
Type(Note 1)

Long
-term

Anticipated Interest Rate
Financial institution
Syndicate of lenders
arranged by Shinsei
Bank, Limited,
Sumitomo Mitsui
Banking
Corporation, andMizuho Bank, Ltd.
as arrangers, MUFG
Bank, Ltd. and
Sumitomo Mitsui
Trust bank.Ltd.as a
co-arranger

Borrowing(Note 2)

Amount(Note 3)¥17
billion(Note 6)

Base rate
plus
0.45%

Drawdown DateMarch
8, 2021

Repayment
Maturity Date

MethodUse of funds

Condition(Note 4)10 years fromdate of loan
disbursements

To be applied
to the fund for
acquisition of Unguaran
Partialprojects
teedinstallments anticipated to unsecure(Note 7)be acquiredd.
and related (Note 5)
costs andexpenses
To be

Long
-term

Syndicate of lenders
arranged by Shinsei
Bank, Limited,
Sumitomo Mitsui
Banking
Corporation, andMizuho Bank, Ltd.
as arrangers¥2.3
billion(Note 8)Base rate
plus
0.20%

March
8, 2021

The earlier dateof (i) March 8,2023 or (ii) the
first interest
payment dateafter theconsumption tax
refund dateapplied for
payment ofconsumptio Unguaranteed
n taxes in
Lump-sum
unsecure
payment relation to thedanticipated(Note5)
acquisitions
and related
costs andexpenses(Note 1) Long-term refers to borrowings that have a period of over a year from the date of loan disbursement to the date of maturity.
(Note 2) Does not include financing-related costs paid to the financial institutions.
(Note 3) The base rate refers to the Japanese yen TIBOR (Tokyo Interbank Offered Rate) announced by the General Incorporated Association JBA TIBOR
Administration.
(Note 4) We can make an early repayment of all or part of our borrowings subject to certain conditions, such as prior written notice to the relevant
financial institutions.
(Note 5) We expect our loan agreements to contain restrictive covenants, including the maintenance of certain LTV ratio (based on project valuation
report amount), debt-to-equity and debt service coverage ratios and restrictions on our ability to grant security interests in connection with otherindebtedness. Breaches of such covenants could result in, among other things, restrictions on our ability to incur new debt and our being required
to grant security interests in favor of the lenders. See “Our Business—Financing Policies—Fixed Interest Ratio and LTV Ratio”.
(Note 6) Borrowing amount (scheduled) as of the date of this offering circular. The borrowing amount may change after consideration of the amount ofproceeds we receive in connection with the offerings, among other factors.
(Note 7) We intend to enter into balloon amortization loans, which has an initial principal repayment date of June 30, 2021, and subsequent principal
repayment dates will be the last day of June and December (a principal repayment date on a non-business day is moved to the following business
day or the immediately preceding business day in case the following business day falls in the following month), and the remaining principal will be
repaid as a balloon payment on the maturity date. See “Our Business—Financing Policies—Debt Sculpting”.
(Note 8) We intend to enter into this loan for payment of the consumption tax incurred in connection with the acquisition of the anticipated acquisitions,and which we intend to repay with the consumption tax refund to which we are legally entitled. See “—Factors Affecting Our Results ofOperations—Other—Consumption Tax Refund” above.

(ⅳ)Domestic Project Acquisitions and Leasing

45

CSIF will acquire the assets below on March 8, 2021, in accordance with the basic policy of asset management defined in theterms and conditions of CSIF, upon obtaining the approval of CSIF’s board of directors’ meeting on February 17, 2021.
Asset no.
(Note 1)
S-24
S-25

Name of project(Note 2)Type of asset

Location(Note 3)

CS Hiji-machi Dai-ni

Trust beneficiary

Hayami-gun,Power Plant

interestOita

CS Ōgawara-machi

Trust beneficiaryŌgawara-Power Plant

interest

machi, Miyagi

Acquisition price (JPY
million) (Note 4)

Total

27,851
2,745

SellerLOHAS ECE2
G.K..
Tida Power 45
G.K.

30,596(Note 1) Asset number is assigned to the projects to be acquired, based on the classification of the renewable energy. “S” denotes a solar energy
project.
(Note 2) “CS” is the abbreviation for Canadian Solar.
(Note 3) Based on the land or a parcel of the land upon which the solar energy facility is located, as described in the property registry. The
address is described up to the city or district level.
(Note 4) Anticipated acquisition price is as described in the purchase agreements (excluding acquisition expenses such as the payment ofoutsourcing service fees related to acquisition, property-related taxes, urban planning taxes, consumption taxes and other fees).

(ⅴ) Proposed Amendments to Articles of Incorporation and Election of Directors
CSIF's Board of Directors has decided to submit the following proposals to amend its Articles of Incorporation (AOI) andelect Directors at its March 30, 2021 Shareholder Meeting. The amended AOI and the election of Directors will become
effective upon shareholder approval at the Shareholder Meeting.
Proposals
1. Purpose of the Proposed Amendments to the AOI
2. Election of one Excecutive Director
3. Election of one Alternative Executive Director
4. Election of two Surervisory Directors

46

(9) Change in the total number of investment units issued and outstanding
Change in the total number of investment units issued and outstanding and the total amount of unitholders' capital is as shown
below since the establishment of the CSIF.

Date

Event

Total number of investment units
issued and outstanding (units)
ChangeMay 18, 2017
October 27, 2017

Establishment upon
private placement
Capital increase by
public offering

Balance

Total amount of unitholders'
capital (Note 1) (million yen)
ChangeRemarks

Balance

1,500

1,500

150

150

(Note 2)

177,800

179,300

16,891

17,041(Note 3)2,890

182,190274

17,315(Note 4)

46,667

228,857

4,509

21,824(Note 5)-

228,857(147)

21,677(Note 6)2,333

231,190

225

21,902(Note 7)-

231,190(420)

21,482(Note 8)-231,190(133)

21,349(Note 9)-231,190(309)

21,039(Note 10)-231.190(163)

20,876(Note 11)

Capital increase by
November 28, 2017

third-party
allotment

September 5, 2018

Capital increase by
public offering
Cash distribution in

September 14, 2018

excess of earnings(refund ofinvestment)
Capital increase by

October 4, 2018

third-party
allotment
Cash distribution in

March 14, 2019

excess of earnings(refund ofinvestment)
Cash distribution in

September 17, 2019

excess of earnings(refund ofinvestment)
Cash distribution in

March 17, 2020

excess of earnings(refund ofinvestment)
Cash distribution in

September 15, 2020

excess of earnings(refund ofinvestment)(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The party who applied for subscriptionof investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥100,000 (issue value of ¥95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of ¥95,000 per unit for the purposeof appropriation to a part of the funds for acquisition of specified assets or part of repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at an issue price of¥102,180 (issue value of ¥96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥808 per unit for the second fiscal period (ended June 30, 2018), and began to pay it from September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of ¥96,625 per unit for the purpose of
appropriation to a part of the funds for acquisition of specified assets or a part of the funds for repayment of borrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥1,817 per unit for the third fiscal period (ended December 31, 2018), and began to pay it from March 14, 2019.

47

(Note 9) CSIF decided, at a meeting of its Board of Directors held on August 13, 2019, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥577 per unit for the fourth fiscal period (ended June 30, 2019), and began to pay it from September 14, 2019.
(Note 10) CSIF decided, at a meeting of its Board of Directors held on February 13, 2020, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥1,340 per unit for the fifth fiscal period (ended December 31, 2019), and began to pay it from March 17, 2020.
(Note 11) CSIF decided, at a meeting of its Board of Directors held on August 14, 2020, to pay a cash distribution in excess of earnings (refund ofinvestment) in an amount of ¥708 per unit for the sixth fiscal period (ended June 30, 2020), and began to pay it from September 15, 2020.

48

3. Reference(1) Conditions of Investment(as of December 31, 2020)
Type of asset

Total Asset-UnderManagement (AUM)(‘000yen) (Note 2)

Region (Note 1)

Hokkaido/Tohoku% of total AUM(Note 3)

978,114

2.0

Kanto

2,297,723

4.7

Tokai

5,527,098

11.3

Chugoku/Shikoku

9,805,090

20.0

Kyushu20,562,109

41.9

39,170,137

79.9

Hokkaido/Tohoku

48,9700.1

Kanto

648,591

1.3

Tokai

63,3090.1

Chugoku/Shikoku

539,396

1.1

3,184,875

6.5

4,485,144

9.1

Hokkaido/Tohoku

17,9240.0

Kanto

59,1970.1

Tokai282,151

0.6

3,415

0.0

390,4500.8

Subtotal

753,139

1.5

Solar energy facility in trust

804,355

1.6

Subtotal

804,355

1.6

Land in trust

116,7480.2

Subtotal

116,748

0.2

Hokkaido/Tohoku

1,966,112

4.0

Kanto

3,005,513

6.1

Tokai

5,872,560

12.0

Chugoku/Shikoku

10,347,903

21.1

Kyushu24,137,435

49.2

45,329,529

92.4

Solar energy facility etc. total

45,329,529

92.4

Saving/other assets

3,722,790

7.6

Asset total (2)49,052,315

100.0

Solar energy facility

Subtotal

Land

KyushuSubtotal

Land lease

Chugoku/Shikoku
KyushuSolar energy facility etc.

Subtotal49

(Unit: thousand yen)

% of total AUM(Note 3)

Total liabilities

27,459.730

56.0

Total net assets

21,592,58544.0(Note 1) “Hokkaido and Tohoku” denote Hokkaido, Aomori-ken, Iwate-ken, Akita-ken, Miyagi-ken, Fukushima-ken and Yamagata-ken. “Kanto”
denotes Ibaraki-ken, Tochigi-ken, Gunma-ken, Tokyo-to, Kanagawa-ken, Saitama-ken, Chiba-ken Yamanashi-ken, Nagano-ken and Niigata-ken. “Tokai” denotes Shizuoka-ken, Aichi-ken, Gifu-ken, Mie-ken, Toyama-ken, Ishikawa-ken and Fukui-ken. “Chugoku and Shikoku”
denote Okayama-ken, Hiroshima-ken, Yamaguchi-ken, Tottori-ken, Shimane-ken, Kagawa-ken, Kochi-ken, Tokushima-ken and Ehimeken. “Kyushu” denotes Fukuoka-ken, Oita-ken, Miyazaki-ken, Kagoshima-ken, Kumamoto-ken, Nagasaki-ken, Saga-ken and Okinawa-ken.
(Note 2) The amount posted on the balance sheet as of December 31, 2020.
(Note 3) The figures have been rounded to the first decimal place.

(2) Investment Assets①Investment Securities
Not Applicable②Investment Properties
Not Applicable50

③Major Investment Assets
a. summary information for the CSIF
The following table provides summary information for the CSIF current 21 solar energy projects as of December 31, 2020.

Asset #

S-01
S-02
S-03
S-04
S-05
S-06

S-07

S-08

S-09

Site Area(m2)

PPA purchaseprice(yen/kwh)

Category

Project nameLocation

Solar Plant

CS Shibushi-shi

Shibushi-shi,etc.

Power Plant

Kagoshima

Solar Plant

CS Isa-shi

etc.

Power Plant

Solar Plant

CS Kasama-shi

Kasama-shi,

42,666etc.

Power Plant

Ibaraki(Note 1)

Solar Plant

CS Isa-shi Dai-etc.

ni Power Plant

Isa-shi, Kagoshima

31,81836

Solar Plant

CS Yusui-cho

Aira-gun,etc.

Power Plant

Kagoshima

25,27436

Solar Plant

CS Isa-shi Dai-etc.

san Power Plant

40,73640

53,27540

30,24636

45,74040

Solar Plant
etc.

CS Kasama-shi
Dai-ni Power
Plant

Solar Plant

CS Hiji-machi

etc.

Power Plant

Solar Plant
etc.

CS Ashikitamachi Power
Plant

Isa-shi, Kagoshima

Isa-shi, Kagoshima
Kasama-shi,
IbarakiHayami-gun, Oita
Ashikita-gun,
Kumamoto

19,86140

22,22340
40

Certification
Date

FIT term end

February 26,

September 16,

2013

2034

February 26,
2013
January 25,
2013
October 2,
2013

June 8, 2035
June 25, 2035
June 28, 2035

March 14,

August 20,

2014

2035

February 26,

September 15,

2013

2035

January 25,

September 23,

2013

2035

July 16, 2013

October 12,
2035

February 26,

December 10,

2013

2035

February 26,

December 24,

2013 (East)

2035 (East)

February 26,

January 28,

2013 (West)2036 (West)

December 11,

December 06,

2014

2036

March 31,

March 02,

2014

2037

CS
Minamishimabar
S-10

Solar Plant
etc.

a-shi Power
Plant (East) / CS
Minamishimabar

Minamishimabarashi, Nagasaki

56,06640

a-shi Power
Plant (West)
S-11

S-12

S-13

S-14
S-15

S-16

Solar Plant
etc.

CS Minanomachi Power
Plant

Chichibu-gun,
Saitama

Solar Plant

CS Kannami-cho

Tagata-gun,etc.

Power Plant

Shizuoka

Solar Plant
etc.

CS Mashikimachi Power
Plant

44,90432

41,33936

Kamimashiki-gun,

638,552

Kumamoto(Note2)

Solar Plant

CS Koriyama-

Koriyama-shi,

30,376etc.

shi Power Plan

Fukushima(Note1)

Solar Plant

CS Tsuyama-shi

Tsuyama-shi,etc.

Power Plant

Okayama

Solar Plant

CS Ena-shi

etc.

Power Plant

36

32

31,05932

37,37332

Aza Ochise,
Kusumi, Osashima-cho, Ena-shi, Gifu

51

October 24,
2013

June 01, 2037

February 27,

September 15,

2015

2036

September
26, 2014

June 29, 2037

February 24,

September 12,

2015

2037

Asset #Category

Project name

Site Area(m2)

Location

PPA purchaseprice(yen/kwh)

Certification
Date

FIT term end

Aza Magoese,
Toyofusa, Daisen-

S-17

Solar Plant
etc.

CS Daisen-choPower Plant (A)and (B)

February 22,cho, Saihaku-gun,Tottori (A)452,760

Aza Kamikawara,(Note 3)40

2013 (A)August 9,

February 28,2037

2013 (B)

Toyofusa, Daisencho, Saihaku-gun,Tottori (B)

S-18

S-19

S-20

S-21

Solar Plant

CS Takayama-etc.

shi Power Plant

Solar Plant
etc.
Solar Plant
etc.

Shingumachi,

Misato-machi,

machi Power

Kodama-gun,

Plant

Saitamamachi Power
Plant(Note 1)Gifu

CS Misato-

CS Marumori-

16,278

Takayama-shi,

25,315

Marumori-machi,

65,306

Igu-gun, Miyagi(Note 4)

Solar Plant

CS Izu-shi

Ono Aza Okubo,etc.

Power Plant

Izu-shi, Shizuoka

32

32

36

337,160

36

42,97724

26,05121

January 30,

October 09,

2015

2037

January 6,

March 26,

2015

2037

February 28,
2014

July 12, 2038

March 31,

November 29,

2014

2038

November 18,

July 15,

2016

2039

March 27,

July 21,

2018

2039

CS Ishikari
S-22

Solar Plant

Shinshinotsu-

Ishikari-gun,etc.

mura Power

Hokkaido

Plant
S-23

Solar Plant
etc.

CS Osaki-shi
Kejonuma

Osaki-shi, Miyagi

Power Plant(Note 1) Site area for the portion of the solar energy plants land under ownership is shown and excludes the portion of the land where we hold an easement.
(Note 2) Site area for the portion of the solar energy plants and high-voltage land under ownership is shown and excludes the portion of the land where we holdan easement.
(Note 3) Site area for the portion of the solar energy plants and high-voltage land under superficies is shown and excludes the portion of the land where we holdan easement.
(Note 4) Site area for the portion of the solar energy plants and high-voltage land and access roads under superficies is shown and excludes the portion of the land
where we hold an easement.

52

Asset #

S-01

S-02

S-03

S-04

S-05

S-06

Project name

CS Shibushi-shi

Tida Power 01 Kyushu ElectricPower Plant

G.K

Power Co., Inc

CS Isa-shi Power

Tida Power01

Kyushu Electric

Plant

G.K.

Power Co., Inc

CS Kasama-shi

Tida Power01

Power Plant

G.K.

CS Isa-shi Dai-ni

Tida Power01

Kyushu ElectricPower Plant

G.K.

Power Co., Inc

CS Yusui-cho

Tida Power01

Kyushu ElectricPower Plant

G.K.

Power Co., Inc

CS Isa-shi Dai-

Tida Power01

Kyushu Electric

san Power Plant

G.K..

Power Co., Inc

CS Kasama-shi
S-07

Dai-ni Power
Plant

S-08

Tida Power01
G.K..

504

372

334

778

695

Tida Power01

Kyushu Electric

G.K..

Power Co., Inc

331

831
655

687

40
569
670

599

949

859

850

845

29
802
56

593

842

807
747
37

Incorporated

Power Co., Inc

312

492

240

Partner,

G.K.

139

972

TEPCO Energy

Power Plant

365

Fiscal period end
book value(million yen)
(Note 4)

732
907

Incorporated

Kyushu Electric

Plant

540

Appraisal value ofsolar plants(million yen)(Note 3)(upper : solar energy
facility)(lower : land)

22

Partner,

Tida Power01

machi Power

Fiscal period
end valuation(million yen)
(Note 2)TEPCO Energy

CS Hiji-machi

CS AshikitaS-09

Certified
Operator

AcquisitionPrice
PPA company(million yen)
(Note 1)

1,029

922

989

903

884
38

905

866
876
37

CS
Minamishimabar
a-shi Power Plant
S-10(East) / CS
Minamishimabar

1,605
Tida Power 01 Kyushu Electric
G.K.

1,733

Power Co., Inc

1,682

1,538
76

a-shi Power Plant(West)CS MinanoS-11

machi Power
Plant

Tida Power01
G.K.

TEPCO Energy

804

Partner,

1,018

1,061

963
257

Incorporated

53

Asset #S-12

Project name

Certified
Operator

CS Kannami-cho

Tida Power01

Power Plant

G.K..

CS MashikiS-13

S-15

S-16

S-17

Power Co., Inc.

CS Koriyama-shi

Tida Power01

Tohoku ElectricPower Plan

G.K..

Power Co., Inc.

CS Tsuyama-shi

Tida Power01

Power Plan

G.K..

CS Ena-shi

Tida Power01

Power Plant

G.K..

Power Plant (A)and (B)

S-18

S-19

Tida Power01

shi Power Plant

G.K.

CS Misato-machi Tida Power01
Power Plant

machi Power
Plant

S-21

G.K..

CS Takayama-

CS MarumoriS-20

Tida Power01

G.K.

20,385

246

237

724
738

757

775

Co., Inc.

9,694

Electric Power

10,447

10,0 46

The Chubu

254

Electric Power

326

315

TEPCO Energy

326

Partner,

470

447

783
850

800

4,143

Grid,

4,569

4,383

Hokkaido

Incorporated

CS Osaki-shi

Electric Power

4,438
240

Incorporated

Plant

810
16

TEPCO Power

Network,462
121

Incorporated

G.K. (Note 5)

312
61

Co., Inc.

mura Power

9,594
352

Co., Inc.

Electric Power

659
36

The Chugoku

Tida Power01

753
136

The Chubu

Shinshinotsu-

234

588
746

Inc.

G.K..

186
51

Electric PowerPower Co.,

17,867
3,590

TohokuCS Ishikari
S-22

16,80519,751

Co., Inc.

G.K.

461
42

Electric PowerElectric

Fiscal period end
book value(million yen)
(Note 4)526

The Chugoku

Tida Power01

CS Izu-shi Power Tida Power01
Plant

514

Incorporated

G.K.

Appraisal value ofsolar plants(million yen)(Note 3)(upper : solar energy
facility)(lower : land)

484

Partner,

Kyushu Electric

CS Daisen-cho

Fiscal period
end valuation(million yen)
(Note 2)TEPCO Energy

Tida Power01

machi Power
Plan

S-14

AcquisitionPrice
PPA company (million yen)
(Note 1)
(Note 6)

597
680

666

699
68

TohokuS-23

Kejonuma Power
Plant

Tida Power01
G.K. (Note 5)

165

Network

208

205

Incorporated

221
39

Company
Total

49,40548,89043,17145,3295,718(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition expenses related to the payment ofoutsourcing service fees, property-related taxes, taxes on depreciable assets, urban planning taxes, consumption taxes and other fees).
(Note 2) For S-01 to S-18, the fiscal period end valuation is the median amount that the Investment Corporation calculated in accordance with Article 41,
paragraph 1 of the CSIF's Articles of Incorporation based on the range of valuation provided to us by PricewaterhouseCoopers Sustainability LLC
and, for S-19 to S-23, the fiscal period end valuation is based on the median amount provided to us by Ernst & Young Transaction Advisory
Services Co., Ltd. in its project valuation report.

54

(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects that is obtained by deducting the realestate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. from the appraised value at the end of the period in (Note 2) above isstated, and on the lower row, an amount stated in the real estate appraisal report prepared by Daiwa Real Estate Appraisal Co., Ltd. is stated. Realestate includes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy.
(Note 5) Former certified operator,CS Hokkaido Ishikari G.K. for CS Ishikari Shinshinotsu-mura Power Plant and CS Miyagi Kejonuma G.K. for CS Osakishi Kejonuma Power Plant, were merged into Tida Powe01 G.K. as of December 3, 2020.
(Note 6) The acquisition price of CS Mishiki Power Plant had reduced in the amount of 332 million yen on December 16, 2020, back from the signing dateof the Property Purchase Agreement.

55

b. Revenue and expenses of individual renewable energy power generation facilities
Sixth fiscal period (from July 1, 2020 to December 31, 2020)(Unit: thousand yen)
Asset number

S-01

S-02

S-03

S-04

S-05

Total portfolio

CS Shibushishi PowerPlant

1,698,289

19,03914,09929,24929,11423,356715,325

7,573

6,502

10,743

12,142

10,114

11

-

-

-

-

-

2,413,625

26,612

20,602

39,992

41,25733,471

223,744

1,916

1,456

3,284

3,230

2,802

223,744

1,916

1,456

3,284

3,230

2,802

-

-

-

-

-

-

271,827

2,114

2,241

3,461

5,646

4,510

191,463

1,872

1,247

3,051

3,677

2,893

8,585

-

-

-

-

-

(Utilities expenses)

-

-

-

-

-

-

(Insurance expenses)

24,676

241

197

409

378

353

(Land rent )46,502

-

797

-

1,590

1,263

(Trust fees)

600

-

-

-

-

-

-

-

-

-

-

-

Depreciation cost

913,915

9,472

7,837

14,462

16,457

14,263(Structures)

21,501

457

256

324

306

598

(Machinery and equipment)

872,057

8,973

7,563

14,104

16,10913,429(Tools, furniture and fixtures)

11,963

41

17

33

41

235

341

-

-

-

-

-

(Machinery and equipment intrust)

8,017

-

-

-

-

-

(Tools, furniture and fixtures intrust)

33

-

-

-

-

-

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

1,409,487

13,503

11,535

21,20725,334

21,575

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

1,004,138

13,109

9,066

18,784

15,922

11,895

Project name

CS Isa-shi CS Kasama-shi CS Isa-shi Dai- CS Yusui-cho
Power Plant Power Plant ni Power Plant Power Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent
Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Repair and maintenance costs)(Other rental cost)(Structures in trust)

56

(Unit: thousand yen)
Asset number

S-06

S-07

S-08

S-09

S-10

CS Isa-shi Daisan Power Plant

CS Kasama-shi
Dai-ni Power
Plant

CS Hiji-machi
Power Plant

CS Ashikitamachi Power
Plant

CS
Minamishimabara-shi Power Plant(East) / CS
Minamishimabara-shi Power Plant(West)

34,673

28,86537,29236,92465,18815,683

9,763

19,144

16,26529,488

-

-

-

-

-

50,357

38,62956,43653,19094,677

3,874

3,688

4,426

4,164

7,296

3,874

3,688

4,426

4,164

7,296

-

-

-

-

-

5,829

5,802

5,894

5,723

10,791

3,377

3,012

3,881

3,562

5,840

(Repair and maintenance costs)

-

-

-

-

-

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

414

393

498

479

689

(Land rent )

2,036

2,396

1,514

1,681

4,260

(Trust fees)

-

-

-

-

-

(Other rental cost)

-

-

-

-

-

Depreciation cost

19,861

17,60422,07020,21635,224(Structures)

290

247

835

1,441

739

19,52017,314

21,12018,523

34,235(Tools, furniture and fixtures)

51

42

114

252

248

(Structures in trust)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

29,56427,09532,39030,10453,311

20,792

11,53424,04523,08641,366

Project nameRental revenue of renewable energy
power generation facilities, etc.
Basic rent
Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Machinery and equipment)(Machinery and equipment intrust)(Tools, furniture and fixtures intrust)
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)
Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

57

(Unit: thousand yen)
Asset number
Project name

S-11

S-12

S-13

S-14

S-15

CS Minano-machi CS Kannami-cho CS Mashiki-machi CS Koriyama-shi CS Tsuyama-shi
Power Plant
Power Plant
Power Plan
Power Plan
Power Plan

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

30,53318,363684,807

7,542

21,796

8,305

5,528

309,385

2,880

10,929

3

-

-

2

-

38,842

23,892994,192

10,42632,725

3,816

2,068

83,464

1,168

3,468

3,816

2,068

83,464

1,168

3,468

-

-

-

-

-

4,909

5,371

90,501

952

4,820

4,432

1,832

81,080829

3,078(Repair and maintenance costs)

-

1,653

226

-

1,476

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

476

231

9,148

122

261

(Land rent )

-

1,654

45

-

3

(Trust fees)

-

-

-

-

-

(Other rental cost)

-

-

-

-

-

Depreciation cost

16,1989,662

337,941

4,191

13,061(Structures)

766

380

3,551

327

376

15,432

9,226

326,487

3,864

12,380(Tools, furniture and fixtures)

-

55

7,902

-

304

(Structures in trust)

-

-

-

-

-

(Machinery and equipment intrust)

-

-

-

-

-

(Tools, furniture and fixtures intrust)

-

-

-

-

-

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

24,924

17,101

511,906

6,311

21,350

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

13,9186,790

482,286

4,114

11,375

Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Machinery and equipment)58

(Unit: thousand yen)
Asset number
Project name

S-16

S-17

S-18

S-19

S-20

CS Daisen-cho
CS Ena-shi PowerCS Takayama-shi CS Misato-machi
Power Plant (A)
PlantPower Plant
Power Plant
and (B)CS Marumorimachi Power
Plant

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent

25,482

383,529

9,671

12,93928,18813,562

132,857

3,829

6,517

9,260

4

-

-

-

-

39,050516,387

13,501

19,45737,4483,776

51,760

1,762

2,644

5,430

3,776

51,760

1,762

2,644

5,430

-

-

-

-

-

4,552

61,710

1,391

1,743

13,151

3,051

43,616

1,256

1,562

2,666

(Repair and maintenance costs)

-

-

-

-

5,227

(Utilities expenses)

-

-

-

-

-

(Insurance expenses)

298

5,500

135

181

513

(Land rent )1,202

12,593

-

-

4,744

(Trust fees)

-

-

-

-

-

(Other rental cost)

-

-

-

-

-

Depreciation cost

14,510214,567

5,496

7,594

17,051(Structures)

589

4,905

344

176

503

13,823208,879

5,139

7,345

16,313(Tools, furniture and fixtures)

97

782

12

72

234

(Structures in trust)

-

-

-

-

-

(Machinery and equipment intrust)

-

-

-

-

-

(Tools, furniture and fixtures intrust)

-

-

-

-

-

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

22,839328,038

8,649

11,982

35,633

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

16,211

188,349

4,851

7,474

1,815

Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)(Machinery and equipment)59

(Unit: thousand yen)
Asset number

S-21

S-22

S-23

Project nameCS Izu-shi
Power Plant

CS Ishikari
Shinshinotsumura Power
Plant

CS Osaki-shi
Kejonuma
Power Plant

141,970

11,916

3,741

69,450

3,884

1,510

-

-

-

211,420

15,8005,251

28,252--

28,252

-

-

-

-

-

27,011

2,639

1,054

12,7702,074

793(Repair and maintenance costs)

-

-

-

(Utilities expenses)

-

-

-

(Insurance expenses)

3,525

165

61

(Land rent )10,716--(Trust fees)

-

400

200

(Other rental cost)

-

-

-

Depreciation cost

87,776

6,533

1,858

(Structures)

4,082

-

-

(Machinery and equipment)

82,271--(Tools, furniture and fixtures)

1,421

-

-

(Structures in trust)

-

186

155

(Machinery and equipment intrust)

-

6,326

1,691

(Tools, furniture and fixtures intrust)-

20

12

Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal B)

143,039

9,173

2,913

Profits and losses from the rental
business of renewable energy power
generation facilities, etc. (A-B)

68,380

6,627

2,337

Rental revenue of renewable energy
power generation facilities, etc.
Basic rent
Variable rent linked to actual
outputIncidental income
Total operating revenue from therental business of renewable energy
power generation facilities, etc.
(subtotal A)
Operating expenses from the rental
business of renewable energy power
generation facilities, etc.
Taxes and duties(Property-related taxes, etc.)(Other taxes)
Expenses(Management entrustment
expenses)60

(3) Plan for capital expenditure
The following table shows projected major capital expenditures for renewable energy power generation facilities, etc. owned by
CSIF after June 2021. Some portion of the amount are to be treated as expenses for accounting purpose.
Projected amount (million yen)
Name ofinfrastructure
assets, etc.
CS Kannamicho Power
Plant

Location

PurposeKannami-cho

Disaster recovery

Shizuoka

construction

Projected period

Total amountAmount paid
during the
fiscal period
under review

Amount paidby prior period

49

17

17

From September
2020
To January 2021

(4) Capital expenditure during the fiscal period
The following table shows capital expenditures for renewable energy power generation facilities, etc. owned by CSIF during the
fiscal period under review.
Name of infrastructure assets, etc.
(Location)
CS Minano-machi Power Plant(Chichibu-gun, Saitama)Purpose

Implementation period

Modification works forcommunication equipment atinterconnection point

From April 15, 2020
To July 6, 2020

CS Mashiki-machi Power Plant

Remodeling work for online

From April 1, 2020

(Kami mashiki-gun, Kumamoto)curtailment

To October 30, 2020

CS Tsuyama-shi Power Plan

The third-round recovery work

From April 1, 2020

(Tsuyama-shi, Okayama)

from disaster

To July 20, 2020

CS Tsuyama-shi Power Plan

Reconnecting work for PCS

From August 1, 2020

(Tsuyama-shi, Okayama)

strings

To August 31, 2020

CS Marumori-machi Power Plant(Igu-gun, Miyagi)

Remodeling work for online

From June 5, 2020

curtailment

To August 24, 2020

Other plants

Amount paid
(thousand yen)
3,951

16,916
18,606
1,985
1,157
1,969

Total

61

44,584